Groundbreaking new research, published today, reveals the real spending patterns of, and the financial pressures on, UK retirees for the first time.
According to the inaugural Retirement Lifestyle Report from Quilter, the wealth manager and financial adviser, in collaboration with the Centre for Economics and Business Research (Cebr), UK retirees are spending an average of around £22,000 a year, which includes an average of £2,500 on gifting to loved ones.
The research, based on a survey of 5,001 UK retirees, provides the first-ever annual snapshot of real-life retirement spending, broken down by age, gender, region, income level and relationship status. Recognising the broad spectrum of the retirement cohort, Quilter has created six retirement personas, largely based on age and income level, bringing to life the spending, income and general financial outlook of certain retirement typologies.
The research reveals significant income disparities, widespread reliance on the state pension, and growing anxiety among retirees about their financial futures. Nearly one in five (18%) report being very concerned about their ability to maintain their current standard of living, rising to 29% of retirees aged under 65 with an above-median income.
Retirees’ biggest spending areas
Holidays, groceries and housing are the biggest areas of retirement spending – holidays and home renovations are the highest areas of discretionary spending for retirees at £2,137.34 and £1,985.26, respectively, but debt repayments and gifting to relatives are also significant.
The research illustrates how important retiree income is to the wider UK population. The average retiree gifts £1,323 to relatives each year and provides a further £1,175 in assistance to fund education for their grandchildren or other relatives. This represents over 10% of their annual spending and an annual contribution to the UK economy of £16.1bn.
The median retiree household income is £35,000. However, income is not evenly spread across gender and regions. Two-fifths (42%) of retirees in Wales, for example, report an income below £30,000, compared with an average of over £58,000 in London. This leaves many retirees with very little room to save or cover unexpected expenses, after meeting their regular outgoings
Even after they have finished working, the average retiree spends more than £1,500 annually to pay down debt, although this figure declines with age.
Quilter’s research also shows that the State Pension remains a critical source of income. Among those aged 70-74, the State Pension makes up 47% of household income, jumping to 50% for those aged 80-84.
The below table outlines how much, on average, UK retirees are spending per month, and per annum on particular items and services.
| Average spend per retiree | ||
| Goods | Monthly | Annual |
| Housing (rent, mortgage, property maintenance) | £188.20 | £2,258.34 |
| Food and non-alcoholic drink (groceries) | £185.18 | £2,222.17 |
| Holidays | £178.11 | £2,137.34 |
| Renovations / Home improvements | £165.44 | £1,985.26 |
| Energy | £150.52 | £1,806.19 |
| Loan / debt repayments | £131.57 | £1,578.88 |
| Transportation (bus, car including petrol, train travel) | £119.65 | £1,435.82 |
| Phone, tv, and broadband | £117.76 | £1,413.08 |
| Healthcare (pharmaceuticals and any costs associated with healthcare) | £114.48 | £1,373.80 |
| Clothing and footwear | £113.43 | £1,361.18 |
| Gifting to relatives | £110.24 | £1,322.83 |
| Assistance in funding education of grandchildren/relatives | £97.93 | £1,175.19 |
| Gifting to charities | £87.38 | £1,048.56 |
| Dining out (food and drink away from home) | £19.61 | £235.38 |
| Electronics/gadgets | £15.30 | £183.56 |
| Hobbies (excluding sports) | £13.27 | £159.24 |
| Entertainment (theatre, cinema, live sports) | £13.24 | £158.93 |
| Sports (membership of clubs, equipment spending etc.) | £12.23 | £146.81 |
| Subscriptions | £11.53 | £138.30 |
| Total | £1,845.07 | £22,140.88 |
Commenting on the research, Steven Levin, CEO, Quilter, said:
We are proud to launch our inaugural Retirement Lifestyle Report, which represents the first comprehensive study of retirement spending, income and financial concerns in the UK. The research paints a nuanced but urgent picture of retirement in the UK today.
Retirees aren’t just budgeting for themselves; they’re quietly propping up the next generation too. With nearly £2,500 a year being gifted to family and to help with education of loved ones, it’s clear many are playing a bigger economic role than they’re often given credit for. That’s on top of rising living costs, ongoing debt repayments and increasing concerns about the future. These aren’t luxury years, they’re active financial years, and planning needs to reflect that.
It is clear from our research that, despite the stereotype of the cash-rich Baby Boomer, too many people are over-reliant on the state pension to make ends meet. Also, too few are taking financial advice, despite the significant benefits seen by recipients.
To safeguard the future of retirement in Britain, we are urging policymakers to:
- Consult on the most appropriate State Pension uprating and initiate a cross-party commitment to consistency;
- Introduce a nationwide system of targeted financial support to help those who cannot access full financial advice;
- Modernise the gifting allowance to promote intergenerational support, raising the allowance to, for example, £9,000, from the £3,000 level, which has been in place for over 40 years.”
Quilter’s Retirement Lifestyle Report is set to be published annually, providing vital long-term data and insights on how macroeconomic and policy shifts affect the UK’s retired population. It aims to inform better financial planning, improve policymaking and empower retirees across the country. It has also created six retirement personas, which it will use to track spending behaviour across a range of retirement typographies, allowing for the creation of a more nuanced and holistic picture of UK retirement.
Full insights can be found in the Quilter Retirement Lifestyle Report 2025.
