Retirement is often imagined as a chance to relax, travel and spend more time with family. New research suggests the reality can be more financially demanding than expected. Nearly a third (31%) of retirees say their standard of living is now worse than before they retired, compared with 20% who say it has improved. Their retirement regrets offer some useful lessons for anyone still saving.
What retirees say they wish they had done differently
Source: research by the Phoenix Group for Standard Life, based on an Ipsos survey of 6,000 UK adults (June 2025) and an Opinium survey of 4,000 UK adults (January 2026), both weighted to be nationally representative. Wording of the categories is summarised.
Common retirement regrets
Many retirement regrets come from not acting sooner. Three in ten (30%) regret not saving regularly during their working lives, and 29% wish they had started pension saving earlier. Saving consistently is not always straightforward. Having children had the biggest impact on retirement savings for 15% of retirees, followed by divorce (10%) and redundancy (9%). Inflation, market uncertainty and the pandemic have also disrupted carefully laid plans.
Making savings last
Building a pension is only part of the challenge. Around one in eight (12%) wish they had better understood how to convert their pension into an income, and a similar proportion regret spending too much too early. Moving from saving to spending can be difficult, particularly if you are used to a regular salary. Deciding how much to withdraw while ensuring the pot supports you for the long term takes careful thought.
Creating a sustainable income
Start by understanding what you have. Review your pension arrangements, including pots from previous employers, to see which resources are available. Then consider the lifestyle you want and what it may cost, whether that is essential bills, travel, helping family or more time on hobbies.
Planning for the long term
How pension savings are converted into income can matter as much as how much has been saved. Combining flexible income with guaranteed income, such as an annuity, could give greater certainty for essential spending, depending on your circumstances. Planning should also evolve over time, with regular reviews of withdrawals, investments and personal circumstances.
Avoiding retirement regrets before you retire
The lessons from today’s retirement regrets are to start early, save consistently and understand how your pension will be used. Even modest regular contributions can benefit from tax relief, employer contributions and long-term investment growth.
Related reading: our retirement planning guide, tips for a healthy pension as you approach retirement and the government’s State Pension forecast tool.
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This article is for general information and does not constitute tax, legal or financial advice. It should not be relied upon as such. A pension is a long-term investment not normally accessible until age 55 (57 from April 2028, unless the plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up, which would affect the level of pension benefits available.
Our services relate to certain investments whose prices are dependent on fluctuations in the financial markets beyond our control. Investments and the income from them may go down as well as up and you may get back less than the amount invested. Past performance cannot be used as a reliable prediction of future performance.
Compton Financial Services Limited is an appointed representative of New Leaf Distribution Ltd which is authorised and regulated by the Financial Conduct Authority (FCA). FCA number is 460421.
