Older Americans Are Afraid to Spend Their Retirement Savings: Survey

Key Points:

• Prudential Financial's 2026 Retirement Pulse survey reveals that only 14% of Americans aged 50 and older feel comfortable spending on enjoyment during retirement, with even higher-net-worth individuals showing significant spending anxiety.
• Over half of respondents prefer to leave behind excess savings rather than risk depleting their nest egg, a concern that rises to 70% among those with over $500,000 in investable assets, illustrating widespread Fear of Running Out (FORO).
• Many retirees struggle to balance enjoying life now versus saving for the future, with nearly half hesitating to spend due to doubts about Social Security, inflation, and long-term care costs, and a significant portion feeling guilt over discretionary spending.
• The survey highlights a need for guaranteed monthly income solutions, as two-thirds of respondents favor a steady income stream over lump sums to manage retirement finances confidently.
• Despite AI tools aiding retirement planning, most older adults prefer consulting human financial advisors to make informed decisions about spending and managing their savings.