One in three pensioners fear they will overspend

By LUCY EVANS

Updated: 21:50 BST, 10 May 2025

One in three pensioners spend more now than in the early years of their retirement as they struggle to manage their pension savings, according to financial giant Aviva.

Pensioners are ‘caught between a rock and hard place’ as they struggle to ensure their lump sum lasts for their lifetime. Some fear they are spending too much and will run out of money, while others aren’t spending enough.

More than one in three pensioners spent less than they could afford in their early retirement due to worries about their money lasting. However, two in five are spending less now than when they first retired, which typically happens as pensioners exit their active retirement years.

Aviva and charity Age UK are calling for an ‘MOT’ to help mid-retirees access financial support.

This could include conversations on estate planning, state benefits, fraud protection and managing finances if they experience a cognitive decline. 

Emma Douglas, wealth policy director at Aviva, said: ‘Pensioners today navigating mid-retirement are often caught between a rock and hard place when it comes to deciding how best to make their pension savings last. 

Worry: One in three pensioners spend more now than in the early years of their retirement as they struggle to manage their pension savings

For those using drawdown, the over-spenders might draw down on their pension too quickly and risk running out of money. Whereas under-spenders’ overly cautious approach might leave them at risk of not fully enjoying retirement.’

Consider consulting an independent financial adviser to help you understand how far your lump sum will go – and whether your spending matches your savings. Talk to your spouse or partner so you know if they want to spend or save more.

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One in three pensioners fear they will overspend

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