Why Retirees Fear Spending

It may come as a surprise, but many retirees with seven-figure portfolios still feel anxious about spending their money. Despite decades of careful saving and smart investing, the fear of running out of money looms large. This hesitation is becoming more common, with studies showing that retirees withdraw just 2.1% of their savings annually—far below the traditional 4% guideline. Why the restraint? Rising costs, longer life expectancy, and uncertainty about the future are all playing a role.

Living longer is a blessing, but it requires more financial preparation. Many people entering retirement underestimate how long they’ll live, which leads to cautious spending. Add to that the rising costs of healthcare, housing, and everyday essentials, and it’s easy to understand why even well-prepared retirees are choosing frugality over freedom. Some are even choosing to keep working well into their 60s and 70s—more than twice the rate of 35 years ago.

So how can retirees begin to enjoy their money without fear? It starts with having a written retirement income plan. A personalized strategy provides clarity on how much you can afford to spend, how long your savings might last, and where your income will come from each month. With this kind of roadmap, the financial unknowns become more manageable—and confidence can take root.

A solid plan doesn’t just address spending—it also tackles risks. From rising taxes and inflation to market downturns, retirees face challenges that require thoughtful strategy. The right advisor will help identify these risks and build a plan that not only protects your savings but also creates space for meaningful experiences—whether that’s travel, gifting to loved ones, or pursuing hobbies you didn’t have time for before.

If you’ve been hesitant to enjoy the retirement you’ve earned, it may be time to shift your perspective. You worked hard to build this nest egg—not to watch it gather dust. With a clear plan and the right advice, you can spend with purpose, enjoy your retirement years, and still feel secure about the future.