On average, we're living longer. Which is good news. But the trouble is that living longer means that we have to eke out our pension savings for longer as well. Here are some tips to make your savings last in retirement.

Watch how much you withdraw from your retirement savings

It's easy to see a relatively big pot of tax free money when you retire and start thinking of all the different ways you're going to spend it. And certain things may well be a good idea. But you need to remember that - unless you've got a part time job in retirement - the pot of money that's just appeared is finite and won't magically replenish itself.

OK, that sounds like I'm teaching you to suck eggs. But you'd be surprised how many people fall into this trap.

At the very least, sleep on any idea you have to spend a large chunk of money. If it still seems a good idea in the cold light of the next day, talk it over with a trusted (and hopefully blunt) friend to get a second opinion.

Take care on where you invest your pension funds

Conventional wisdom - the kind the newspapers and your accountant will trot out - says that you should invest in an annuity.

These come in a bewildering number of different versions depending on all sorts of different assumptions and options.

Although they're presented as being safe as houses, annuities should come with their own wealth warning. Many of them offer a high-ish payout rate but die when you die. No worries if you're the one person in five who is now thought likely to live until they are a hundred. But not good for your heirs if you're in the majority and don't live long enough to get a decent payback from your investment.

Remember that there are not only different types of annuities, there are also different ways to invest your retirement pension fund. Not all of these die when you die - property is one option that can be bequeathed to your next of kin and provide them with even more to remember you for.

Examine your expenditure

Again, this may sound obvious. But have you actually done it?

Some of the things that made sense to spend on whilst you were at work may no longer be appropriate now that you've retired.

Other things that didn't really matter when you were at work 8 or more hours a day now come into play. You may be spending more time in the house and that will almost certainly affect the things you will be spending money on.

Take an hour out to go through you're bank and credit card statements and ask the simple question "Why?" against each and every entry. Answer that question honestly and be prepared to be surprised at how much you're spending on auto-pilot that doesn't have to happen.

Don't beat yourself up about the stuff you've been spending money on for years that you don't use. Just stop the leaks now, the past is in the past. You need to make your retirement investment work for you now and in the future.