The saving habit has no off switch. After decades of watching balances grow and treating spending as a threat to future security, many people do not automatically feel comfortable using the money they saved, even when they reach retirement.
That points to two transitions in retirement, not one. The financial transition is the one most people plan for: replacing a paycheck, managing investments and covering expenses. The behavioral transition is learning that spending, within a plan, is now part of the job. New research suggests that many adults are struggling with that second shift.
Knowledge Snapshot
- Prudential’s 2026 Retirement Pulse found that 86% of U.S. adults aged 50 and over do not feel free to spend their retirement savings on things they enjoy.
- Even among respondents with $500,000 or more in investable assets, 61% did not feel comfortable spending for enjoyment.
- The survey covered adults aged 50 and over, not only people who were already retired.
- Caution can be reasonable. A written income plan can help distinguish prudent limits from guilt that keeps people from using money they can afford to spend.
Quick Answer
A lifetime of saving does not guarantee that you will feel ready to spend in retirement. To make spending more manageable, build a written withdrawal plan, identify which expenses are essential and which are discretionary, and decide on both a spending floor and a ceiling. Consider whether guaranteed income can cover core costs, then review the plan regularly. This is not a case for spending without limits. It is a way to use your savings deliberately while respecting real risks, including a long life, market losses and health costs.
Why Trust This Article
This article draws on Prudential’s 2026 Retirement Pulse release, published October 1, 2026, and consumer guidance from FINRA on managing retirement income. It separates survey findings from personal financial guidance and avoids treating one withdrawal rate or product as right for everyone.
The Prudential survey was conducted online from July 27 to August 2, 2026, with 3,023 U.S. adults aged 50 or older. Respondents were balanced demographically to represent a target population of pre-retirees and retirees. The release does not state that the sample was probability-based or provide a conventional margin of error, so the findings should be read as survey results rather than a precise measure of every U.S. adult aged 50 and over.
Editorial Perspective: The Saver’s Second Transition
Lynnette Khalfani-Cox’s work on retirement readiness and the psychology of money informs this ATMC authority framing: retirement confidence involves more than accumulating enough. People also need a way to make decisions about using what they have saved. That is not a direct quotation or a claim that there is one solution for every household. It is a practical way to understand the gap between having assets and feeling able to spend them.
Saving habits are useful when your goal is to build a reserve. But habits can outlast the circumstances that created them. A person who has spent decades saying “not yet” to optional spending may keep saying it after the paycheck stops. The instinct to protect the balance can feel responsible, even when the plan already allows for a reasonable amount of enjoyment.
The Prudential results show why assets alone may not resolve the discomfort: 61% of people surveyed with at least $500,000 in investable assets still did not feel comfortable spending for enjoyment. That does not prove they have more than enough. It does suggest that a balance, without a clear plan for turning it into income, may not create confidence by itself.
Planning is the bridge between the financial transition and the behavioral one. A withdrawal strategy gives savers rules to consult when they worry about spending. Professional guidance can also help translate abstract concerns into specific decisions, particularly when a household has several accounts, a pension, Social Security, taxes or health care costs to consider.
What This Means for You
Prudent caution is not a flaw
Running out of money is a real risk. Someone with uncertain health expenses, limited savings, a long family history of longevity or little flexibility in their budget may reasonably choose to spend less. Market declines and inflation can also affect how long a portfolio lasts.
The goal is not to eliminate caution. It is to make sure caution is connected to the numbers and the life you want, rather than operating as a permanent “no.” A written plan can reveal whether a worry calls for lower withdrawals, a bigger reserve or a conversation with a qualified professional.
Build a practical “license to spend” framework
Use these steps as a starting point, not a substitute for individualized advice:
- Write down your income and withdrawal plan. List Social Security, pension income, any other reliable sources and withdrawals from savings. Decide which accounts will fund which expenses, and note how you will adjust if markets or costs change.
- Separate essential costs from discretionary choices. Housing, food, utilities, insurance and health care are different from travel, hobbies or dining out. Seeing the categories can make it easier to protect necessities while choosing meaningful extras.
- Set a spending floor and a ceiling. A floor is a deliberate amount or set of priorities you intend to fund when your plan supports it. A ceiling is a limit that helps preserve reserves and control risk. Neither is a command to spend a set amount regardless of your situation.
- Consider guaranteed income for baseline costs. Social Security, a pension or an annuity may help cover some recurring expenses. Annuities have different costs, terms and trade-offs, so compare the contract, guarantees, inflation protection, fees and access to your money before deciding.
- Schedule periodic reviews. Revisit the plan after a major change in health, housing, family needs, income or markets. A planned review can help replace day-to-day balance checking with a calmer decision process.
There is no single withdrawal percentage that is safe for everyone. FINRA notes that circumstances such as age, portfolio mix, inflation and other income affect what a person can sustainably withdraw. A rule of thumb is a planning starting point, not a guarantee that money will last.
Give the emotional transition its own attention
A spreadsheet may show that a planned purchase fits, while your instincts still say it is wrong. Some people need explicit permission and a structured plan before they can spend without guilt. It may help to begin with a modest, budgeted expense that matters to you, then check how it fits into the plan rather than judging the decision by the account balance alone.
You can also talk through the plan with a spouse, trusted family member or qualified financial professional. A professional can help model different scenarios and explain trade-offs, but should not pressure you into a product or spending level. To learn more about how beliefs shape financial choices, see ATMC’s article on the psychology of money. If you want help evaluating advice, our resource on finding a financial planner can help you prepare.
FAQ: Afraid to Spend Retirement Savings?
Why do retirees struggle to spend their savings?
Many people have practiced saving for decades, so spending can feel like risking security rather than using money for its intended purpose. Uncertainty about longevity, inflation, health care and markets can add to that discomfort. A written withdrawal plan may help turn a vague fear into specific choices and guardrails.
How much can I safely withdraw each year in retirement?
There is no universal amount that is safe for every person. The answer depends on your age, expenses, other income, investment mix, taxes, inflation and how long your savings may need to last. A qualified professional can help test a plan against different scenarios.
Is it bad to save too much for retirement?
Not necessarily. Keeping more savings can provide security and flexibility, especially if future costs are uncertain. But saving without a clear purpose can also mean postponing meaningful experiences you could reasonably afford. The question is whether your saving level reflects your actual needs and priorities.
What is a safe withdrawal rate?
A safe withdrawal rate is a planning estimate for how much someone might take from savings over time. It is not a promise or guarantee. Market performance, inflation, fees, taxes and lifespan can all affect whether a withdrawal plan holds up.
How do I create a retirement income plan?
Start by listing essential and discretionary expenses, then identify income from Social Security, pensions and other sources. Decide how savings will cover any gap, set guardrails for withdrawals and plan when to review the numbers. Professional guidance can help with taxes, investment risk and competing income options.
Should I buy an annuity for guaranteed income?
An annuity may provide payments under a contract, but it is not right for everyone. Compare the insurer’s guarantees, fees, inflation features, surrender terms, death benefits and how much access you retain to the money. Consider how it fits with other income and discuss alternatives with a qualified professional before committing.
Surveys That Count™ is AskTheMoneyCoach.com’s research and insights desk, featuring original surveys, third-party studies, and data-driven reports relevant to consumers, businesses, investors, entrepreneurs, and financial decision-makers.
