Pension warning as savers face 'real risk' with retirement error: 'Minimise any nasty surprises!'

Some 20 per cent of respondents aged over the age of 55 shared that they consistently spent more than they have initially expected in life post-work.

An extra 11 per cent revealed that this ended up happening early on in their retirement, based on the survey's results.

Living expenses were found to be the biggest financial burden for pensioners every day.

Some 28 per cent noted that this was their top item of expenditure which can primarily be blamed on the increase in the cost of living over recent years.

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Housing expenses, including mortgage payments, rent and property maintenance, were listed as the second-largest expense.

Another 21 per cent of British pensioners listed it as their biggest financial obligation over the past year.

The cost of living crisis has been caused by a sharp rise in inflation, an increase in interest rates and and a hike in energy costs.

As a result, pensioners have found themselves paying more for goods and services, while their mortgage repayments go up over the same time.

Becky O’Connor, the director of Public Affairs at PensionBee, issued a warning to those preparing for life in retirement.

She explained: "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."

Notably, PensionBee also surveyed Britons aged between 18 to 54 about what they thin their eventual biggest retirement expense will be.

When it came to savers aged 18 to 44, housing costs topped the list of concerns which is indicative of the UK's ongoing property crisis.

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On top of this, 19 per cent of younger people aged between 18 to 24 think they will have to use their retirement savings to assist their families financially.

A fifth of those polled said they estimate care costs will make a large portion of their overall expenditure.

O'Connor added: "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.”