Almost a third (31 per cent) of retirees believe their living standards have dropped compared to pre-retirement, while only 20 per cent feel they have improved, analysis from Standard Life has shown.

The study found a gap between expectations and reality, with 17 per cent of retirees needing more money in retirement than expected, and 16 per cent who said retirement would last longer than they had anticipated.

In hindsight, 30 per cent of retirees wished they had saved more regularly, while 12 per cent would have liked a better understanding of how to turn their pension savings into an income.

Meanwhile, 12 per cent regretted spending too much early on.

The findings follow the Pensions Commission’s recently published interim report, which estimated that around 15 million people are currently undersaving for retirement.

While many retirees face real financial pressures, the research findings highlighted the importance of planning early, staying engaged, and seeking support when needed – presenting an opportunity for the pensions industry to better support savers.

Standard Life retirement savings director, Mike Ambery, commented: “Retirement is one of the biggest transitions people will ever make, yet it’s easy to underestimate just how challenging the journey to and through it can feel.”

He explained that longer lifespans, high costs and economic uncertainty mean that many retirees feel their finances are more stretched than they expected.

“For some retirees, the gap between the retirement they hoped for and the retirement they can realistically afford becomes visible in everyday decisions,” he said.

“At the same time, many people are also discovering that retirement isn’t simply about building savings, but about managing how those savings are used over time. Knowing how to turn a pension pot into a sustainable income, while balancing flexibility and long-term security, can feel complicated.”

He added: “What’s striking is how many retirees look back wishing they had started saving earlier, contributed more consistently or planned more thoroughly.”

However, there are still reasons for optimism. “Greater flexibility in how people work and retire, improved access to guidance and smarter digital tools can all help people feel more in control of their long-term finances,” he said.

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