Retirees in the UK have been warned that they could run out of money in their pension, some new research has said.

A study from the Institute for Fiscal Studies (IFS) found that newly retired pensioners with above average earnings would actually accelerate their spending in their 60s and 70s before eventually slowing down in their 80s.

The average 75-year-old pensioner spends £430 per person more on holidays than they did at age 67, their research found.

As reported by Yahoo Finance, the figures, published on Thursday, suggest increased incomes were driven by higher state pensions and receipt of survivors’ benefits,

Incomes increasing faster than spending means that the rates of saving rose with age through retirement.

Glasgow Times: Money could be spread thin in the later stages of retirement if spending is increased in the early stages (PA)Money could be spread thin in the later stages of retirement if spending is increased in the early stages (PA) (Image: PA)

The IFS did warn that this rate of spending could see problems for pensioners in later life, especially due to the cost-of-living crisis and the state pension triple lock being temporarily frozen this year.

Additionally, the reduced value of private pensions means there could be a need for saving to be done consistently through the early stages of retirement.

Heidi Karjalainen, a research economist at IFS and an author of the report, said: "As retirement incomes are increasingly funded by defined contributions pots, which can be accessed flexibly, more and more retirees face complex and consequential decisions about how quickly to draw down their pension wealth.

"If the spending patterns of current retirees are a good guide to how people in the future will want to spend, planning drawdowns on the basis of reduced spending needs in later retirement may not be wise as it may result in unexpected shortfalls in living standards at older ages."