Pre-retirees are planning to spend a larger amount of their pension pot in the first ten years after they leave work, according to a survey by Investec Wealth & Investment.
The asset management firm polled almost 1,000 people to assess attitudes to spending in retirement by people aged 55-64.
It found that 70% of those polled plan on spending their retirement funds on holidays and travel in the immediate years after they retire. Nearly two-fifths plan to spend money on home improvement compared to a third (35%) who plan to eat out more and a quarter (26%) on a new car.
According to the firm, retirement spending would more likely be 'Mondeo than Lamborghini', with 82% saying they would take a cautious approach to spending in their later years having saved regularly in order to build up a pension pot.
The poll also found that just 13% of those surveyed think that the changes to annuities announced in the March Budget would encourage them to spend more during the first few years of retirement.
Nick Gartland, senior financial planning director at the firm, said: 'It is good to see that the majority of people are looking to take a sensible approach to retirement saving and spending given the profound changes announced in the March Budget.'
Also in the survey, around three fifths (59%) said they would reduce spending further into retirement when they are less willing and able to undertake activities, like travelling overseas.
Over half (52%) of pre-retirees said they were not planning to restrict how much they spent on non-essential luxuries in retirement in order to have sufficient funds to cover the cost of long-term care.
A quarter (25%) said they would leave a larger inheritance for their family given the changes announced by the chancellor in the Budget.