Retirees battle psychological barriers to spending hard-earned savings
Nearly four in ten retirees report reluctance to spend their retirement savings, despite having saved for decades. Major studies show around sixty-four percent of Americans fear running out of money more than death itself. Primary concerns include high inflation, uncertainty about Social Security, healthcare costs, and worry about living too long. Research indicates many retirees, even wealthy ones, actually underspend relative to what they could safely withdraw. Financial experts identify the issue as largely psychological—a sharp contrast to decades spent saving. Retirees struggle with the mental transition from accumulation to decumulation. However, evidence suggests those with solid planning and spending strategies tend to feel more confident. The gap between real financial capacity and perceived security remains a significant challenge affecting retirement quality of life.
Key facts
- 64% of Americans worry more about running out of money than death according to 2025 Allianz study
- 39% of retirees report reluctance to spend retirement savings; 71% of workers expect to feel similar hesitancy
- High inflation (54%), Social Security adequacy (43%), and taxes (43%) cited as top concerns
- Research shows retirees with at least median assets often underspend and see wealth increase instead of decline
- 65-year-old couples face estimated $345,000 in healthcare costs over retirement per 2025 Fidelity report
- Only 23% of Americans discussed retirement spending fears with financial professionals; down from 28% in 2024
- 70% of retirees say maintaining nest egg size in retirement is very important
How different outlets framed it
Left-leaning coverage: Progressive sources highlight how policy uncertainty, particularly fears about cuts to Social Security and Medicare, drive retirees into excessive caution. They note that political rhetoric about fixing entitlements creates anxiety that prompts conservative spending even among those with sufficient assets, and emphasize that system sustainability depends on action from elected officials rather than individual precaution.
Right-leaning coverage: Right-leaning sources focus on personal responsibility and market uncertainty, arguing that excessive government spending creates inflation that legitimately threatens retirement security. Some suggest scaremongering is overblown—noting Social Security can pay meaningful benefits through mid-2030s—and emphasize that disciplined savers' reluctance reflects sound financial conservatism.
Limits of this briefing
Most research focuses on affluent retirees with substantial assets, potentially underrepresenting lower-income retirees whose fears may be more financially grounded. Political polarization and media coverage of policy uncertainty make it difficult to separate real economic risks from perception-driven anxiety.
Sources
- Yahoo Finance: Retirees spent their lives saving. Now they're afraid to spend Centre
- Allianz Life Insurance: Americans Are More Worried About Running Out of Money Than Death Centre
- Center for Retirement Research (Boston College): How Policy Risks Affect Retirement Planning for Older Americans Left
- Kiplinger: The No-Regrets Retirement: Waiting Too Long to Spend Your Savings Is a Bigger Risk Than Running Out of Money Centre
- Employee Benefit Research Institute (EBRI): 2026 Retirement Confidence Survey Finds Americans Less Confident About Retirement Centre