Around one in four people are loath to spend any savings they have built up for retirement and determined to avoid it 'at all costs', new research reveals.

Nearly the same number say they are content to spend but will 'think twice' before doing so, while just over one in 10 are happy to dig into their savings freely when they get older.

Much of the financial advice aimed at older generations is focused on how to ensure you don't run out of cash during retirement. 

However, recent official figures show many are racing to make pension withdrawals ahead of new inheritance tax rules in 2027.

Money experts say a significant cohort of retirees need to be talked out of their anxiety over letting go of savings.

Many pensioners have more than enough saved but still fear spending it, according to pension firm Aegon which carried out the research among 2,000 adults, weighted to be representative of the UK population.

Aegon found that the proportion of people set against spending any retirement savings dropped to 10 per cent among those who had already retired.

This is presumably because they are facing the reality of living on a pension and meeting everyday bills.

Most people who work in the private sector now invest their pension and draw down an income from this fund in retirement.

This is more risky than buying an annuity, which gives a guaranteed income for life, or having one of the salary-linked pensions that prevail in the public sector.

Many living on investments in retirement are forced by necessity to access those funds on a regular basis, but will have accrued cash and investments in Isas and other accounts too. 

When financial markets hit trouble, experts suggest tapping outside cash funds instead until stocks recover.

The Aegon survey also found that 17 per cent of adults were trying not to spend their savings in retirement - or thought they would in future attempt not to - but not always successfully.

Meanwhile, around 19 per cent of the nearly 500 retirees polled said they were relying solely on the state pension to live on, while 13 per cent of the 1,500 non-retirees who were asked thought they would do so.

The full state pension is currently worth £12,000 a year if you qualify for the full rate.

Why are some pensioners afraid to spend - and can you overcome this fear?

Aegon's Money:Mindshift podcast covered the issue of pensioners being afraid of spending their savings in its latest episode.

Guest Dan Haylett, a director at TFP Financial Planning, explained the spending fears he believes most worry pensioners and stop them enjoying their money.

1. The weekly shop – Everyday spending feels like a leak that drains future security.

2. Holiday guilt – Dreaming of a trip but haunted by 'What if I need that money later?'

3. Home improvements – Is a new kitchen a luxury or a necessity? Retirees often stall, unsure if they're being sensible or selfish.

4. Helping the kids – Gifting money is an emotional minefield. Will I regret it? Will they expect more? Legacy anxiety runs deep.

5. Care costs – The fear we don't talk about. What if I need expensive care? Will I become a burden? The unknown freezes spending.

Haylett's tips for 'guilt-free, joy-filled retirement spending' for those who need encouragement are below.

1. Spend for meaning, not just maintenance – Retirement isn't about hoarding wealth. It's about using it to live fully.

2. Start with fun – Forget the spreadsheets. Ask: What makes me happy? Then spend in that direction.

3. Practice spending – It's not reckless. It's a skill. And like any skill, it takes time to build.

4. Set guardrails – Use smart boundaries to avoid overspending, and underspending, yourself into regret.

5. Invest in memories – Time is precious. Spend on experiences that create lasting joy. That's the real dividend.

Haylett says: 'Clients often have more than enough to live well, but they still hesitate to spend. They've spent 30 or 40 years building the habit of saving.

'Flipping that switch - especially when it means drawing down capital that won't be replaced - is emotionally challenging.

'We're nudged to save, but we're not prepared for the transition into spending. That's why so many people reach later life with regrets about what they didn't do.'

Dr Tom Mathar, a behavioural scientist at Aegon who hosts its podcast, says: 'Many retirees suffer from what I call "paycheck anxiety", the stress of spending savings instead of receiving a regular income.

'But often, the real issue isn't financial, it's psychological. 

'No amount of money will make you feel secure if your mindset is stuck in "saving mode,"' Mathar says.

'To move forward, you need to shift into a "spender identity". My advice: take the leap.

'Begin with a "memory fund" to invest in experiences that bring joy and meaning, and set simple guardrails so your spending feels safe, not scary. You've earned this. Now it's time to enjoy it.'