So much for the notion that it will cost less to live in retirement.

With 39 percent of U.S. retirees spending more than they expected now that they're out of the job and 49 percent of consumers age 40+ believing that planning for retirement is tougher for them than it was for their parents, it would seem that what might have appeared a slam-dunk is actually something quite different.

That's according to “Global Atlantic Retirement Spending Study: Perception vs Reality,” new research from Global Atlantic Financial Group.

It finds that while the typical non-retired U.S. consumer over the age of 40 spends $2,993 a month, on average, the typical retiree spends 32 percent less ($2,008). So yes, retirees spend less – but the study finds that they didn't realize they'd have to cut back to do it.

“Many Americans adjust their lifestyles and cut spending once they see how quickly costs can add up in retirement,” Paula Nelson, president, retirement at Global Atlantic, said in a statement.

Most common areas where retirees are spending less than preretirees include expenses such as the following:

entertainment (29 percent less),
dining out or restaurant takeout (24 percent less)
traveling (18 percent less)
housing (23 percent less on mortgage payments and 22 percent less on rent)

Unsurprisingly, the study found that people with pensions or annuities can afford significantly more than those without.

The average retiree with a pension spends 39 percent more than those without a pension ($2,379 compared with $1,709), and just 20.5 percent less than preretirees.

Those with an annuity spend 37 percent more than the average retiree who does not have an annuity ($2,545 a month compared with $1,850 a month), and just 17.6 percent less than preretirees.

And those cutbacks that retirees are having to economize with? Retirees with pensions spend more on housing, dining out at restaurants and recreation than their contemporaries without pensions.

In fact, 56 percent of non-retired Americans ages 40 and up place high importance (9 or 10 on a 10-point scale) on generating ongoing income to pay for basic living expenses in retirement, such as housing, food, transportation and utilities.

And 66 percent say they're on track to generate enough income to meet these needs.

The fact that retirees spend less than nonretirees is likely not by choice, since 55 percent of retirees have retirement planning regrets.

The top three financial regrets are not saving enough (36 percent), relying too much on Social Security (20 percent) and not paying down debt before retiring (12 percent).

In her statement, Global Atlantic retirement president Paula Nelson added, “Our study indicates that while those with pensions and annuities still often make changes as they age, there isn't as much of a need to drastically adjust their spending. This doesn't surprise us, as guaranteed income beyond Social Security can help retirees maintain the lifestyles that they are accustomed to even after they stop working.”

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