Follow us
Publications Commentary Research People Events News Resources and Videos About IFS
Home Publications How does spending change through retirement?

How does spending change through retirement?


You can download the event slides below: 

Fuelled by changes to UK pensions policy over the last decade, an increasing number of people save for their retirement in 'defined contribution' pension pots. Due to the introduction of 'pension freedoms' in 2015, those saving in this way have a great deal of flexibility over the pace at which to withdraw income from their accumulated pension pot and how to vary this through their retirement. The way in which desired spending changes through retirement is a key factor in the kind of income profile, and therefore speed of pension withdrawal, that people should aim for in retirement.

At this event, IFS researchers presented the findings of new research on the spending patterns of current retirees. This research examines how spending on different categories of goods and services changes with age, how this relates to levels of income and saving among retirees, and how these patterns differ between different types of household. We will discuss the implications for those drawing on their pension income in future. Following this, Carolyn Jones, Head of Pensions Policy and Strategy at the Money and Pensions Service, gave a response to the findings of the report. 

More on this topic

This report brings together new evidence on these issues to examine the recent trends in, and prospects for, the labour market for people in their 50s and 60s.
We quantify the impact of increasing the state pension age from 65 to 66 on household incomes, poverty and public finances, after – in particular – taking into account that some will remain in paid work at age 65 as a result of the reform.
Press release
Reductions in state pension income meant that the absolute income poverty rate for 65-year-olds rose by 14 percentage points, or nearly 100,000 people, to reach 24% by late 2020.
In this report, we shed light on this question by examining the spending patterns of current retirees in the UK.
Press release
New IFS research published today , funded by the IFS Retirement Saving Consortium and the Economic and Social Research Council, examines how the spending of recent retirees changed as they aged, over the period from 2006 to 2018.