Following the success of our recent Permission to Spend: Unlocking Client Confidence in Retirement webinar that was hosted by Wealthtime’s David Edgar and joined by Tony Wickenden of Technical Connection and Phil Wickenden of Ad Lucem, we’ve brought together some of the key insights from the session.
Drawing on Wealthtime’s latest research among retirees and financial advisers, the webinar explored why even the most technically robust retirement plans don’t always translate into confident spending.
Below, we highlight four of the most important takeaways and what they mean for adviser-client conversations.
The retirement spending challenge
Many retirees spend years carefully building their wealth, supported by a sound financial plan designed to deliver a sustainable income throughout retirement. Yet having a plan and living confidently with that plan are not always the same thing.
To explore this challenge, Wealthtime commissioned research among 1,000 affluent UK retirees and 200 financial advisers to better understand the gap between technical retirement planning and real-world spending behaviour. The findings revealed an important truth: even when people know they can afford to spend, many still struggle to do so.
Here are four key insights from the research and what they mean for advisers.
1. Confidence isn’t just about affordability
One of the clearest findings was that knowing you can afford to spend and feeling comfortable spending are not the same thing.
Our research found that 24% of retirees believe they are spending less than their financial position supports, while only 7% think they may be spending more than is sustainable. This suggests a significant number of retirees may be holding back despite having the means to enjoy more of the retirement they’ve worked hard to achieve.
Many retirees spend decades focused on accumulating wealth. Transitioning from saving to spending can feel uncomfortable, even when the plan clearly shows they can afford it.
For advisers, this highlights an important role beyond financial planning: helping clients gain confidence in using their wealth, not just preserving it.
2. How money arrives matters
The research revealed a significant behavioural insight: the same money can feel very different depending on how it is delivered.
When retirees were presented with an additional £5,000 of affordable spending per year, they felt notably more comfortable spending it when it was described as guaranteed income for life rather than a planned withdrawal from investments.
On a scale of 1-10, confidence in spending the money scored 6.0 when presented as guaranteed income, compared with 4.7 when presented as a planned withdrawal, despite the amount being identical.
The lesson is clear. Clients don’t just respond to the value of their income. They respond to how that income is experienced.
A regular, predictable income stream can often feel easier to spend than repeatedly making withdrawal decisions, even when both approaches are financially sound.
3. Confidence can fade faster than advisers think
A client may leave a review meeting feeling reassured and ready to act, but that confidence doesn’t always last.
The research found that around half of advised retirees felt reassurance from a financial review had started to weaken within six months. In many cases, doubts begin to reappear long before the next formal review meeting.
Household dynamics can also play a role. Among partnered retirees, 38% said differing levels of spending confidence had delayed or prevented a significant purchase or experience.
This reinforces the importance of ongoing conversations. Creating a plan is one thing; helping clients maintain confidence in that plan is another.
Regular check-ins can help identify concerns early, provide reassurance and ensure clients continue to make decisions aligned with the life they want to live.
4. Waiting too long has real consequences
Perhaps the most striking finding from the research was that one in three retirees believe they have missed out on an opportunity or life experience because they waited too long to feel comfortable spending money they could afford to use.
From family holidays and home improvements to supporting loved ones or investing in their own wellbeing, many retirees delay decisions despite having the resources available.
The research also found that when advisers explicitly told clients they could afford to spend more, only just over half went on to increase their spending and sustain that change over time.
The challenge for advisers isn’t simply providing permission. It’s helping clients turn that permission into action.
After all, the goal of retirement planning isn’t just to create financial security. It’s to help clients enjoy the lifestyle their wealth was designed to support.
Download the full guide
These insights are just a snapshot of the findings from Wealthtime’s Permission to Spend research. The full guide explores the behavioural barriers that can prevent clients from enjoying a financially secure retirement and introduces a practical framework advisers can use to support more confident spending decisions.
Download the full Permission to Spend guide today to discover the complete research findings, adviser insights and practical tools to help clients move from planning for retirement to truly living it.
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This article is intended for regulated financial advisers and investment professionals only. Wealthtime does not provide financial advice. This information is not intended as financial advice and should not be interpreted as such.
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