Retirement can be hard. Your kids are living their own lives, you’ve left the job you were doing for decades, you haven’t built a new routine yet; and the only thing you have left to cling to is the money you worked so hard to save all those years. But it’s time to let it go, at least a little, and spend somewhat foolishly. And that’s where it gets difficult for so many. Allianz Life explains:
After decades of saving, many Americans struggle with the idea of actually spending their retirement savings, according to the 2026 Annual Retirement Study* from the Allianz Center for the Future of Retirement, part of Allianz Life Insurance Company of North America (Allianz Life).
Seven in 10 (71%) working Americans say they anticipate being reluctant to spend money in retirement in order to preserve their account balance as much as possible. This feeling continues after leaving the workforce. Nearly two in five (39%) retirees are reluctant to spend to preserve their savings.
The top risks that contribute to being reluctant to spend money in retirement include:
- Outliving savings (50%)
- Future high medical expenses or needing long-term care (50%)
- Unforeseen costs such as major home repairs or emergencies (50%)
- Inflation reducing their purchasing power (48%)
Action Line: You don’t want to go bankrupt, but learning to spend a little of your savings in retirement comes with the territory. There’s a reason you’ve been saving ’til it hurt all those years. When you want to talk about your spending and plans for retirement, email me at ejsmith@yoursurvivalguy.com.
