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According to research conducted for Prudential, one in four retirees (29 per cent) admit to spending on average £8,000 more in first year of retirement than in subsequent years. However, 19 per cent of those who had spent more in the first year of retirement later regretted doing so.

In fact, Prudential found that only around a third (32 per cent) of retired UK adults had set a retirement budget. More than a third (34 per cent) said they just played it by ear, while just 17 per cent saw a financial adviser for advice on living on a pension.

Gary Shaughnessy, Prudential managing director of retail life and pensions, said: "It is quite worrying to see the lack of planning people undertake as they approach retirement and it's particularly surprising to see how few of today's pensioners sought financial advice.

"Seeing a financial adviser should be a baseline activity for everyone planning their retirement so that they structure their finances to maximise retirement income from all available sources, including pensions, savings and investments and equity in their homes, if necessary."