January and the urge to clear space
January is not just about setting new goals.
For many people it is about clearing what has quietly built up.
This instinct is not cosmetic. It is psychological.
Humans are naturally drawn to order, particularly at moments of transition. Research shows that when clutter remains unresolved it creates measurable stress.
This applies not only to physical spaces but also to financial complexity, where pensions are often one of the most cluttered and least understood areas of adult life.
Clutter and stress what the research shows
Clutter is not neutral.
Clutter increases stress hormones
A widely cited study by Saxbe and Repetti published in Personality and Social Psychology Bulletin examined the relationship between household clutter and stress levels.
The researchers found that people who described their homes as cluttered had higher levels of cortisol throughout the day. Cortisol is a primary stress hormone and persistently elevated levels are linked to anxiety, fatigue and impaired decision making.
The study concluded that clutter represents unfinished business and keeps the brain in a heightened state of alert.
Clutter reduces focus and decision quality
Research by McMains and Kastner published in The Journal of Neuroscience found that cluttered environments overload the brain’s visual processing systems.
Participants in cluttered settings found it harder to focus, filter information and complete tasks efficiently. Even simple decisions required more mental effort.
The implication is clear. When the brain is overloaded by unresolved information, thinking becomes harder.
Clutter is associated with lower wellbeing
A study by Roster, Ferrari and Jurkat published in Current Psychology found that people experiencing high levels of clutter reported lower life satisfaction, higher emotional exhaustion and a stronger sense of being overwhelmed.
The authors concluded that clutter contributes to ongoing background stress rather than momentary irritation.
Financial clutter has the same affect
The same psychological mechanisms apply when information is disorganised or unclear. This is how many people experience pensions.
A UK survey conducted by Aviva found that sixty one percent of adults feel stressed when thinking about later life planning, including pensions.
Separately, the Mental Health Foundation reports that financial worries are one of the leading contributors to anxiety and poor mental health among working age adults.
Financial stress does not simply affect mood. It affects sleep, concentration, relationships and long term planning.
When pension information feels confusing or fragmented, many people avoid it altogether.
Complexity drives avoidance
Research from the Behavioural Insights Team consistently shows that when decisions feel complex, distant or information heavy, people are more likely to delay action even when they understand the importance.
Pensions sit firmly in this category.
They are long term.
They involve unfamiliar language.
They often sit across multiple providers and years of employment.
Avoidance in this context is not laziness. It is a normal human response to cognitive overload.
The many pot problem
Modern working lives rarely follow a straight line.
People change jobs more frequently than previous generations and accumulate workplace pensions along the way.
The Financial Conduct Authority has highlighted that many people in the UK hold multiple pension pots and are unsure how many they have, where they are held or how they are invested.
Each pension pot on its own may be reasonable. Together they can feel confusing and disconnected.
Like physical clutter, the issue is not that something is wrong. It is that nothing is organised into a clear picture.
Financial stress is not just emotional
A major academic review by Richardson, Elliott and Roberts published in Clinical Psychology Review examined the link between financial difficulties and mental health.
The review found a strong association between ongoing financial strain and symptoms such as anxiety and psychological distress. Importantly, uncertainty and lack of clarity were shown to be more damaging than short term financial shocks.
Pensions are by nature long term. When they remain unclear, that uncertainty can sit in the background for decades.
Clarity reduces stress
Research consistently shows that clarity improves emotional wellbeing.
A study by Aegon found that people with a clear retirement plan were four times less likely to feel stressed about their financial future than those without one.
The Pensions and Lifetime Savings Association has also shown that individuals who engage earlier with their pensions tend to achieve better long term outcomes. This is largely due to structure, understanding and time rather than higher risk or constant changes.
Understanding does not guarantee outcomes, but it reduces mental burden and supports better decisions over time.
Decluttering your finances, a first step
As with physical decluttering, the first step is awareness rather than action.
For pensions this often means identifying how many pensions exist, understanding what each one does and seeing how they fit together.
Many people report that simply understanding their position reduces stress even before any changes are made.
Clarity creates calm. Calm enables better decisions. Pension Pulse can take away that burden from you.
Why January matters
January works because it creates psychological distance from the pace of everyday life.
Research into behaviour change shows that temporal landmarks such as the start of a new year make people more open to reflection and organisation.
This is why clearing space feels easier now than later in the year.
Applying the same mindset to pensions is not about radical change. It is about replacing uncertainty with understanding.
A quiet first step
You do not need to solve everything at once.
For many people the most effective January action is simply creating clarity. Understanding what exists, identifying where complexity has built up and knowing what questions to ask next.
If you would like help understanding your pension arrangements and how they fit into your wider plans, we are here to help. Contact us at Pension Pulse and we will take the mental load from you, and get things on track.
IMPORTANT INFORMATION
This article is for information only and does not constitute personal financial advice.
Past performance is not a reliable indicator of future results.
The value of investments can fall as well as rise, and you may get back less than you invest.
Tax treatment depends on individual circumstances and UK legislation, which may change.
If you are unsure whether a pension or investment strategy is right for you, please seek regulated financial advice.
