Research by PensionBee also revealed 20 per cent of those aged over 55 have consistently spent more than they expected to during their retirements so far.

With an additional 11 per cent admitting this had occurred early on in their retirement.

Daily living expenses emerged as the largest financial burden for retirees, with 28 per cent citing it as their top item of spending.

Housing costs, including mortgage payments and general property maintenance, was ranked as the second-largest expense, while 21 per cent of retirees identified it as their biggest financial commitment.

Becky O’Connor, director of public affairs at PensionBee, said “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.”

The research also found for savers aged 18 to 44, housing costs emerged as the most common concern (28 per cent).

In addition to this, 19 per cent believed they would need to use their retirement savings to support their families, for example as money for a house deposit.

O’Connor added: “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.”

The data also found 36 per cent of respondents over the age of 55 said they consistently spent approximately what they expected to.

However, just three per cent said they spent less than expected in the early years of retirement but their spending has now aligned with their expectations.

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