Retirees say financial planning should start at age 31

Retirees believe serious financial planning for retirement should now start at the age of 31, on average, according to new research.

The study of 1,000 UK retirees aged 67 and over found two thirds of respondents (66%) believe people should begin financial planning between the ages of 16 and 34, with four in ten (40%) reporting that the rising cost of living had changed the retirement lifestyle they had expected to have. Among these:

• 60% have cut back on heating or energy use
• 58% are eating or drinking out less
• 53% have taken fewer holidays
• 49% have cut back on days out
• 37% are using discounts, deals, offers or memberships more frequently

The research, commissioned by Boundless, found retirement costs have taken some by surprise, with almost a third (32%) saying it had turned out to be more expensive than they expected. The most underestimated costs for these retirees are energy bills (88%), food and groceries (85%) and council tax (62%), while more than a third (36%) said days out and leisure activities had cost more than they expected.

Darren Milton at Boundless, the membership club for working and retired public sector and civil service workers, said: “Retirement can feel a long way off for people who are balancing today’s bills and responsibilities, but the message from those who have already retired is clear: starting to think about it earlier can create more choices later.

“Planning should go beyond pensions and savings. Thinking about how you want to spend your time, the experiences you want to enjoy and what those things might cost can help you prepare for a more fulfilling retirement.”

Looking back, four in ten (40%) retirees believe they could have retired an average of 4.4 years earlier if they had made different financial decisions.

Among these, more than half (53%) said paying more into their pension could have helped them retire earlier, while 45% pointed to saving more regularly and 39% to starting a pension sooner.

Personal finance expert Lynn Beattie, known as Mrs Mummypenny, said: “It's striking that so many retirees believe they could have retired almost five years earlier if they'd made different choices with their money. Retirement has been more expensive than planned in many cases, with luxuries being sacrificed to pay for rising essential bills. 

“The good news is it's never too late to improve your financial future. Small changes like increasing pension contributions and reducing unnecessary spending can compound into significant benefits and help people enjoy greater freedom and security later in life.”

More than half of respondents (53%) admitted they had spent little or no time planning how they would fund their retirement before leaving work, while six in ten (59%) had spent little or no time planning how they would spend their time.

Almost a third (32%) reported seeing fewer people day-to-day as the hardest aspect of retirement to adjust to, followed by having less disposable income (29%) and losing the routine of work (2%).

To find out more, please visit www.boundless.co.uk.

ENDS

How to bring retirement closer – and make your money go further

by Mrs Mummypenny, personal finance expert

1. Start saving now, even if it's only a small amount

According to research by Boundless, retirees believe financial planning for later life should begin around age 31, and many regret not starting to save earlier. Even saving £25 or £50 per month consistently creates good habits. One of the keys to saving a substantial amount is to grow as large a pot as possible, as young as possible, so you benefit from years of compounding growth. Once you start, don’t stop and keep increasing those payments.

2. It's never too late

At the same time, it's never too late to start saving. Yes, the guidance will always be to start as early as possible, but it’s better to have something saved than nothing. 

3. Increase your pension contributions whenever your income rises

When you receive a pay rise, bonus or new income stream, consider directing some of that extra money into your pension before lifestyle inflation takes over. Plus, when you increase your pension contribution, your employer may add some extra as well. 

4. Never leave free employer contributions on the table

With a workplace pension, check whether your employer will match higher contributions. This is one of the simplest ways to boost retirement savings because you're effectively receiving free and additional money towards your future at little cost to your current lifestyle.

5. Find hidden money in everyday spending

Review your essential bills, direct debits, regular subscriptions and insurance renewals every quarter. It's easy for new ones to sneak in, double up (I have seen families paying for three lots of Amazon membership!) or old ones to roll over at renewal. Small savings across many regular bills can free up hundreds of pounds annually that could be redirected into retirement savings. The key is to create a regular habit of reviewing your spending, rather than making savings that feel more painful.

Keep an eye on the costs that vary from one month to the next: your shopping bill, fuel costs, clothing spends or socialising with your friends. Can you save here by switching supermarkets, or switching to supermarket-branded products? Can you do more ‘bring a bottle’ drinks, rather than drinks at the pub?

6. Use a round-up savings function to add to your pension

Many banks have a round-up function where your purchases or transactions are rounded up to the nearest, say, £10, and the difference is added into savings. This can add up over time and can be moved into your pension pot. 

7. Use memberships and discounts to reduce costs

Many people assume saving money implies frugal living and/or missing out, but often it means being a bit cleverer about how you spend. Membership schemes such as Boundless, loyalty programmes and cashback tools can reduce the cost of days out, travel, dining and shopping while maintaining your lifestyle. You can still do what you enjoy, but with a discount, to make it even sweeter.

8. Prioritise expensive debt before retirement

High-interest borrowing can significantly slow your journey towards retirement. Focus on clearing credit cards, often with interest rates at 30% plus, and personal loans carrying the highest interest rates. Every pound spent on unnecessary interest is a pound that's not working towards your future financial security.

9. Create a mortgage reduction plan

For many households, the mortgage remains their biggest outgoing. If possible, consider making regular overpayments, even if small and often. Always consider your options at the end of a mortgage deal, seeking better interest rates if possible and never letting your mortgage sit on a standard variable rate. Entering retirement without a mortgage will make a dramatic difference to monthly cash flow.

10. Prepare for the costs retirees commonly underestimate

Many retirees report that retirement costs more than they expected – particularly essentials such as energy, groceries and council tax. Build these expenses into retirement planning now, assume price rises and regularly review projected household budgets. Having a prudent view of future living costs helps prevent unpleasant surprises and reduces the chance of having to cut back on the things you enjoy doing. 

Ends

Editors notes

Methodology

The research was conducted by Censuswide among 1,000 retirees aged 67 and over. Data was collected between 27 August and 3 September 2026.

Censuswide is a member of the Market Research Society and the British Polling Council, and a signatory to the Global Data Quality Pledge. It adheres to the MRS Code of Conduct and ESOMAR principles.

About Boundless

Boundless is a membership club for civil service and public sector workers who are looking for inspiration on getting the most out of their free time. With a heritage and expertise dating back more than 100 years, Boundless offers its 150,000+ members deals on hundreds of unique experiences, events, volunteer activities and things to do. It is also mutual, so all profits go straight back into the club to benefit members.

www.boundless.co.uk

About Mrs Mummypenny

Lynn Beattie, otherwise known as Mrs Mummypenny, is a single mum to three boys and one cat, living in Hertfordshire.

Lynn has been a personal finance expert for 10 years and regularly writes for newspapers and magazines, as well as appearing on BBC TV/radio, Channel 5, and Sky News regularly.

Visit her website: https://www.mrsmummypenny.co.uk/