Taking steps to avoid a retirement overspend
Home >
All >
Taking steps to avoid a retirement overspend
A fifth of respondents to a survey1 have consistently spent more than they expected to during their retirement so far. Moreover, 11% of the over-55s surveyed also said their overspending had occurred early on in their retirement.
So, what were the biggest reasons behind the overspend? Cost of living (28%), housing costs, including mortgage payments and maintenance costs (21%), travel (14%), supporting family (7%) and leisure (6%).
Having worked hard all your life, the feeling of emotional and financial freedom that often accompanies retirement is enough to lead some retirees to spend more than they should. With reserves to draw upon and plenty of free time, it can prove a challenging financial situation for those who are less strategic with their money.
Plan for future expenses
To avoid a retirement overspend, we can work with you to understand what your spending needs might be and develop a plan that supports your desired lifestyle.
1PensionBee, 2024
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice and certain forms of estate planning.
It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency.
Information is based on our understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.
Tax treatment is based on individual circumstances and may be subject to change in the future.
Other Insights of interest
29th April, 2026
Dividend outlook – growth expectations for 2026
Following growth of 1.3% in the fourth quarter and total headline payouts of £87.5bn in…
Read full insight
22nd April, 2026
Are your family ready for the largest intergenerational transfer in history?
The world is on the brink of an unprecedented transfer of wealth. A notable World…
Read full insight
16th April, 2026
Build momentum from day one – new tax year planning
A new tax year feels a bit like spring cleaning for your finances – a…
Read full insight
9th April, 2026
Economic Review March 2026
Middle East conflict hits UK economy The Office for Budget Responsibility (OBR) warned the Middle East…
Read full insight