A typical couple spends £1.9 million over their lifetime, according to new research from retirement specialists.
The first £1 million is gone by the age of 50.
The remaining £893,500 is split with £473,000 spent before retirement and £420,500 left for the over 65s.
The highest earners – one in four of all households – will have a lifetime spend of £2.8 million and one in 16 will enjoy £1 million in their retirement.
An average household will need to generate an annual retirement income of £14,100 to sustain their lifestyle, not including the state pension,
But most savers approaching the age of 65 underestimate their spending needs by £100,000 over their retirement, says financial firm Tilney.
The cost of having a good time
The firm analysed figures from the Office of National Statistics to come up with the numbers for the report The Cost of Tomorrow.
Researchers also looked at how the over 65s spent their money.
Fun-loving pensions spend £99,500 on having a good time, with £41,000 spent on holidays, £36,000 on entertainment and £22,000 on eating out
A third (£141,000) goes on housing costs
For the wealthiest 25%, only a quarter of their cash is spent on housing (£192,000), with far more (£182,000) on leisure, with £74,000 on holidays.
Most of those over 45 believe they will either improve or maintain their living standards in retirement, but the research found they underestimate their budget by almost £100,000.
Financial hurdles for savers
They expect to spend £16,456 a year, adding up to £325,800, but spend £420,500.
Andy Cowan, head of financial planning at Tilney said: “The sums we spend over our lifetimes when quantified in today’s prices seem mind-bogglingly large, and yet they reflect the reality of life today.
“The top quarter of households splash nearly £3 million, much of which is when they are no longer working and can really enjoy the fruits of their labours.
“While some of retirees can enjoy recreation and achieve their desired lifestyle, those coming behind face significant pressures on retirement income and much greater uncertainty because of the demise of traditional, predictable final salary pensions.
“They must overcome several hurdles if they want to ensure they can live with financial security in their own retirement.”
