Transitioning from saving your money to spending your money is hard. It’s the subject of my series “Are You Spending Your Money Foolishly?” Your Survival Guy doesn’t want you to break the bank, but you’ve been saving til it hurt your entire life, and now you might want to enjoy those trips you’ve been dreaming about or that classic car you’ve always wanted.
But despite all that saving and working, Americans are reluctant to spend in retirement. A recent survey from Allianz Life explained:
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: Those are all important reasons to watch your money, and each concern should be part of your planning. When you want to talk about your saving and your plan for retirement, email me at ejsmith@yoursurvivalguy.com. And click here to subscribe to my free monthly Survive & Thrive letter.
