Do you feel guilty about spending your pension?

In an August 2025 press release published by Money Marketing, Aegon has revealed its research into the emotions retirees associate with spending their pension funds.

The study showed that retirees, overall, feel negative emotions more often than positive ones in association with spending their accrued pension wealth:

• Anxiety (26%)
• Fear (18%)
• Guilt (15%)
• Excitement (15%)
• Security (17%)
• Relief (10%)

Although some readers may be surprised by these statistics, others could relate to the negative feelings in the list. After all, if you have spent decades saving and investing carefully, a sudden pivot into “spending mode” could feel counterintuitive and even daunting.

What’s more, even affluent individuals are feeling worried about affording the retirement they want. The UK’s Retirement Living Standards indicate that a couple needs around £60,600 a year for a comfortable retirement – over 25 years, that’s just over £1.5 million between you, and this doesn’t include leaving a pot of wealth to the next generation either.

So, how do you stop retirement anxiety in its tracks?

Keep reading to learn more.

A data-led approach could keep fear and guilt at bay

If you’re recently retired or on the cusp of this milestone, there may be a lot of unanswered questions in your mind.

• “Am I making the right decision retiring at this age?”
• “Will I need to downsize my home or make cuts to my lifestyle?”
• “Can I support my children and grandchildren with their goals?”
• “What will motivate me once I stop working?”

These are just four of the many questions that may keep you up at night.

While the emotion-based questions can be a little harder to answer – more on this shortly – taking a data-led approach to your finances in retirement may bring you peace of mind.

For example, working with a financial planner who uses cashflow modelling software could take your retirement plan from “what if?” to “I can’t wait”.

Cashflow modelling, otherwise known as cashflow forecasting, takes your financial information and produces various scenarios for your future wealth circumstances. It can factor investment returns, inflation, interest rates, and other important elements, into the equation. If your situation changes, the forecast can adapt; for example, if you were to get divorced and see a change to your income, your financial planner can produce a new cashflow model for you.

There is no guarantee of what the future holds. But taking action today to see where your existing wealth could take you, means you may enter retirement with confidence and peace of mind.

Most importantly, taking steps to prepare your wealth for retirement could make you feel excited about spending the money you have worked hard to accrue – not guilty, anxious, or even fearful.

Read more: 4 simple ways to have a lasting impact on your grandchildren’s lives

Retirement signifies the beginning of a new chapter, not just the closing of an old one

Along with the financial shift that happens when you retire, it can be a hugely impactful emotional change too.

It’s likely you have spent most of your adult life working, raising a family, and generally being extremely busy. For many, retiring means accepting that life will move at a slower pace, and this can feel daunting at first.

As such, your feelings of financial guilt and worry could tie in with a sense of dread about what your purpose will be once you stop working.

The good news is that, once your financial ducks are in a row – thanks to careful preparation with professional input – you may be able to focus entirely on your goals for retirement. Be it maintaining your health and fitness, spending more time with loved ones, or even relocating overseas, you can start to view retirement as the start of a new chapter, rather than as a closing door.

It could help to build a trusted support network

Stopping work, decumulating your pension, and changing your day-to-day routine all at once is a big step. And while many don’t speak about it, you would be surprised to learn just how many retirees feel anxious and even depressed without the right support.

So, if you are feeling worried about the prospect of spending your savings and completely stopping work, remember that you are not alone. Opening up to loved ones, or even seeking guidance from professional counsellors or support groups, may be constructive.

Along with your friends and family, your financial planner can act as a supportive ally, helping you to transition into retirement with ease. Managing your investments, ensuring your wealth is adequately protected, and staying abreast of legislative changes that could affect your tax bill, we’re here to take some of the weight off your shoulders.

Read more: Income Tax for retirees: Why it’s rising, and what you can do

Whether you want regular contact with your financial planner or just a once-a-year review of your wealth, our award-winning team offers bespoke planning suited precisely to your goals.

We can also work with multiple members of your family, including your spouse and/or adult children, to ensure the solutions we recommend are appropriate for everyone. And as life’s twists and turns happen, however sensitive they may be, your financial planner will be there to support you with full knowledge of your situation.

Get in touch

Email us at hale@kelland.co.uk, or call 0161 929 8838, for help retiring with confidence.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

The Financial Conduct Authority does not regulate estate planning, cashflow planning, or tax planning.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts. 

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.

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