A fifth of respondents to a survey,3 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.
3PensionBee, 2024
