Planning for a retirement that works for you
We spoke to over 5,000 retirees in the UK to get a clear picture of what retirement really looks like in 2025. The result? A powerful snapshot of how people are managing their money, what they’re worried about, and how they’re preparing for what’s next.
Key takeaways
- Average retiree spending is £22,140 a year, but this varies widely depending on income and age.
- The State Pension is a lifeline—especially for those on lower incomes. For many, it makes up nearly half of their income.
- Gifting is a big deal: retirees give over £2,500 a year to family and education support, making up more than 10% of average expenditure.
- Living costs are rising, and more than half of retirees are worried about maintaining their standard of living.
- Policy changes are reshaping retirement plans, especially around inheritance tax and pensions.
- Financial advice makes a difference: retirees who get advice are more confident, more satisfied, and better prepared.
Meet the six retirement personas
Under 65 with income under £35k
- Rely heavily on the State Pension and benefits.
- Spend less on holidays and entertainment.
- 52% are worried about maintaining their lifestyle.
- 45% are getting financial advice - more than other low-income groups.
Under 65 with income over £35k
- High spenders on holidays, gifts, and home improvements.
- 72% are worried about the future, despite their income.
- 78% are taking financial advice and planning ahead.
- Most proactive about inheritance tax changes.
65–79 with income under £35k
- 52% of income comes from the State Pension.
- 52% are concerned about living standards.
- Only 15% are getting financial advice.
- Many are cutting back on essentials and gifts.
65–79 with income over £35k
- Spend more on travel, dining, and gifting.
- 84% are satisfied with their income.
- 52% still worry about the future.
- 57% are advised, but many still aren’t.
Over 80 with income under £35k
- Most reliant on the State Pension (57% of income).
- Spend the least across all categories.
- 72% are not worried about their lifestyle.
- Only 16% are getting advice.
Over 80 with income over £35k
- Continue to spend on holidays, dining, and family.
- 70% are satisfied with their income.
- 63% are concerned about inheritance tax changes.
- Just 32% are taking advice—despite being most at risk from tax changes.
Want to know more?
You can access the full report here.
What this means for you
Whether you’re already retired or just starting to think about it, this report shows that retirement is deeply personal. Your income, your goals, and your support network all shape your experience.
But one thing is clear: planning ahead matters. The right advice can help you protect your income, support your family, and enjoy the retirement you’ve worked for.
*Research by Quilter based on responses from 5,001 UK retirees, conducted in February 2025 by Censuswide and econometric analysis by the Centre for Economics and Business Research (Cebr).
Quilter Financial Planning Network only: Quilter Financial Services Limited, Quilter Financial Limited & Lighthouse Advisory Services Limited Aug 2025.