New research from Wealthtime has revealed that many retirees are struggling not because they lack money, but because they lack confidence in how to spend it.
The findings, published in Wealthtime’s Permission to Spend Report, show that uncertainty around retirement spending is preventing many retirees from making the most of their wealth and enjoying the retirement lifestyle they have worked hard to achieve.
The study surveyed 1,000 UK retirees aged 55 and over who had at least £100,000 in investable assets and access to resources that could support retirement spending.
Despite having substantial assets available to them, confidence in spending decisions remains low.
Just 38% (four in ten) of respondents believe they are spending the right amount in retirement.
Meanwhile:
- 24% believe they are spending less than they could comfortably afford.
- 24% worry they are running down their retirement assets too quickly.
- 11% do not know whether their spending is sustainable.
The findings suggest that one of the biggest challenges facing retirees is not the size of their retirement pot, but the confidence to use it.
Many retirees lack a clear spending plan
When asked whether they knew how much they could safely spend each year, responses revealed significant uncertainty.
- 38% had a fairly precise annual spending figure.
- 26% had a broad spending range in mind.
- 36% had only a rough feeling or no figure at all.
Advice appears to make a considerable difference.
Current advised clients were almost three times more likely to have a defined annual spending target than those who had never received advice:
- 71% of advised retirees had a spending figure.
- Just 24% of non-advised retirees had one.
However, having a target does not necessarily mean retirees follow it. Among those with a spending figure:
- 46% were spending within their planned range.
- 37% were spending more than intended.
- 17% were spending less than intended.
Together, these findings highlight a significant gap between financial planning and real-world spending behaviour.
Wealthtime’s spending confidence index reveals widespread uncertainty
To better understand how retirees feel about their finances, Wealthtime developed its inaugural Spending Confidence Index.
The average score was just 54 out of 100, indicating many retirees are uncertain about turning retirement savings into a fulfilling lifestyle.
The Index measured four key areas:
- Plan clarity.
- Financial security.
- Emotional permission to spend.
- Whether retirement wealth is being used as intended.
Confidence scores were modest across all four categories, suggesting that behavioural and emotional barriers continue to influence spending decisions long after retirement begins.
Cashflow planning boosts confidence
One of the clearest findings from the research was the impact of having a written lifetime cashflow plan.
Retirees with a documented plan achieved an average Spending Confidence Index score of 65, compared with 49 among those without one.
This suggests that long-term financial planning can provide valuable reassurance and improve confidence around spending decisions.
Confidence from advice often fades quickly
While financial advice clearly improves confidence, the research suggests the effect may not be long-lasting.
Among advised retirees:
- 50% said confidence gained from a review meeting fades within six months.
- More than a quarter (27%) said it fades within three months.
The study also found that reassurance from advisers does not always translate into action.
Even when advisers explicitly tell clients they can afford to spend more:
- 52% increase their spending and maintain it.
- 27% increase spending temporarily before reverting to previous habits.
- 21% do not change their behaviour at all.
These findings highlight the challenge advisers face in helping clients trust and act upon long-term financial plans.
The cost of under-spending in retirement
The consequences of low spending confidence extend beyond finances.
The research found:
- 44% of retirees have postponed, reduced or cancelled something they could have afforded.
- 57% continue saving or investing while delaying experiences they want to enjoy.
Taken together, the findings suggest many retirees are sacrificing opportunities and experiences despite having sufficient resources to support them.
Commenting on the findings, Michael Milner, Head of Platform Proposition at Wealthtime, said:
“Our research shows that, especially for advised clients, the problem is not a savings gap, it is a confidence gap. The regulator’s focus on decumulation advice is about ensuring income is sustainable. It highlights the importance of cashflow modelling, while also demonstrating that retirement planning is not solely a technical conversation. Advisers are already doing the hard work in creating a suitable long-term plan, but many clients are missing the permission to act on it and, as a result, are losing out on the lifestyle they want to enjoy in retirement.
“The value of advice does not end when the plan is agreed. Clients need to trust that it will work long after the review meeting has finished, but our research shows that confidence can fade within months. The FCA is reviewing how ongoing advice should be delivered, including whether there is a need to move away from calendar-driven reviews, towards a model based on client need. We support giving advisers greater flexibility, allowing for more natural opportunities to check in with clients and helping to maintain confidence throughout the relationship.”
What this means for advisers
The Wealthtime research highlights an important challenge for retirees, advisers and the wider industry.
While much attention is focused on building retirement wealth, this study suggests that confidence may be just as important as capital. Many retirees have the financial resources to enjoy retirement but lack the reassurance needed to spend comfortably.
For advisers, the findings reinforce the value of ongoing engagement, cashflow planning and helping clients gain the confidence to turn their retirement savings into the lifestyle they want.
You can download the full ‘Permission to Spend’ adviser guide here.
Wealthtime and Technical Connection ‘Permission to Spend’ webinar
Join our 1 hour CPD accredited webinar ‘Permission to spend: Unlocking client confidence in retirement’, where our Wealthtime host David Edgar will be joined by Tony Wickenden (Technical Connection) and Phillip Wickenden (Ad Lucem)
Thursday 8 October 2026
10:00am to 11:00am (1 hour) | CPD-accredited
Join us live for a webinar designed to help financial advisers better understand the gap between a technically robust retirement income plan and sustained household action.
You can sign up to the webinar here.
About the research
Research was conducted by Ad Lucem among 1,000 UK retirees aged 55 and over who were fully, mainly or semi-retired, actively involved in household financial decisions, held at least £100,000 in qualifying non-pension investable assets, had more than one type of retirement, investment or secondary-property holding, and had access to assets that could support retirement spending.
Within the sample:
- 60% were currently advised.
- 20% were previously advised.
- 20% had never received financial advice.
The Spending Confidence Index is scored from 0 to 100 using twelve agreement statements across four equally weighted dimensions: plan clarity, financial security, emotional permission to spend and whether retirement wealth is being used as intended. Two negatively phrased statements are reverse-scored, and “don’t know” responses are excluded from item-level calculations.
Stay connected
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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