Two-fifths of retirees are reluctant to spend their savings
usatoday.com • • business
Key Points:
- Many American retirees struggle to transition from saving money during their careers to spending their retirement savings, with 39% expressing reluctance to spend and 71% of working-age Americans anticipating similar hesitation.
- Financial advisers often find it challenging to convince clients to spend their retirement funds, as many retirees are accustomed to saving and find it difficult to adjust to drawing down their nest egg.
- The shift from a steady paycheck to fixed retirement income creates stress for retirees, who must now control their spending without the ability to increase income through work.
- Fear of outliving their money is a primary concern for retirees, often leading to underspending and regret over missed opportunities, such as travel or other bucket-list experiences.
- Experts emphasize the importance of balancing the risk of running out of money with the need to enjoy retirement, encouraging retirees to thoughtfully spend rather than hoard their savings.
