A fifth of retirees have consistently spent more than expected, with 11% overspending early in their retirement1.
The primary causes of overspending include rising living costs (28%), housing expenses (21%), travel (14%), family support (7%), and leisure activities (6%). Retirement often brings a sense of freedom, both emotionally and financially, which can lead to overspending. With ample savings and free time, some retirees may find it challenging to manage their finances strategically. Without careful planning, this can lead to financial strain further down the line.
Be strategic
To prevent overspending, it’s essential to plan ahead. By understanding your future spending needs, you can build a financial plan that keeps your retirement stress-free and sustainable. We can help you stay on track, so your hard-earned savings fund the retirement you want.
1PensionBee, 2024
It is important to take professional advice before making any decision relating to your personal finances. Information within this article 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.