New figures show that many people have miscalculated how much they would be spending in retirement, with almost a third overspending what they had allowed themselves.

The new research from Pension Bee also lifts the lid on what the public think they will need in retirement, depending upon their age now… and the stats show big disparities in people’s priorities.

Pension Bee say that a fifth of Brits (20%) over the age of 55 have consistently spent more than they’d expected to during their retirements so far, with an additional 11% expressing that this occurred early on in their retirement but they had got it back on track.

Daily living expenses emerged as the largest financial burden for retirees, with 28% citing this as their top item of expenditure which may be attributed to the rising cost of living in the UK since 2022.

Housing costs, including mortgage payments and general property maintenance, ranked as the second-largest expense, with 21% of retirees identifying it as their biggest financial commitment.

PensionBee also surveyed pre-retirees (aged 18 to 54) about what they anticipate will be their largest expense in retirement. For savers aged 18 to 44, housing costs emerged as the most common concern (28%), reflecting worries over rising property prices in the UK.

Additionally, nearly a fifth (19%) of young savers (aged 18 to 24), believe they’ll need to use their retirement savings to support their families, for example as money for a house deposit.

Meanwhile, a fifth (20%) of pre-retirees (aged 18 to 54) expect care costs to be a significant financial burden in retirement

Becky O’Connor, Director of Public Affairs at PensionBee, said: “Overspending in retirement is a real risk. It can be hard to know how much you are likely to spend. With living and home maintenance costs often exceeding expectations, a significant chunk of today’s retirees are overspending.

 “There are other areas of spending, such as helping out younger family members, that could become even more demanding on pension pots over the coming years, so the next crop of retirees may find they are stretched even further beyond their expectations.

“The survey data suggests that when retirement planning, assuming you will overspend beyond the budget that you initially set could be a wise way to minimise any nasty surprises.

Using generic guidance on how much you might need for different living standards may be useful, however, bear in mind that spending needs are extremely subjective and based on many factors, such as housing costs, the number of children or grandchildren you may have, health and life expectancy.”

So, just how accurate are your estimates for what you’ll be spending in retirement?

As the story above demonstrates, everyone has an individual take on just how much they will need to enjoy a comfortable retirement, depending on their circumstances and aspirations.

To take the guesswork about how much YOU will require as an income (and therefore how much you will need to have put aside in savings and investments) simply log onto RetireEasy, where your LifePlan will be as individual as you are.

Key in all of your relevant data, and the results come out in easy-to-understand graphs. You can also run different scenarios on how those figures will vary if you make any changes occur – such as helping out a family, having to take early retirement, or taking that trip of a lifetime.