Afraid to Spend Your Retirement Savings? How to Feel Confident Spending in Retirement

For decades, the message has been save, save, save. So when retirement finally arrives, many people find it hard to flip the switch and actually spend.

New research from Prudential shows this isn't limited to people who are short on savings. Even retirees with substantial assets often feel they don't have permission to enjoy their money. Here's what the data shows, why the shift from saver to spender is so hard, and what can help.

What the research found

Prudential's 2026 Retirement Pulse survey, released October 1, 2026, asked 3,023 U.S. adults age 50 and older about retirement spending. Among the findings:

• 86% don't feel free to spend their savings on things they enjoy, including 61% of those with $500,000 or more in investable assets.

• 54% would rather leave money behind than run out or would rather preserve their assets, rising to 70% among those with $500,000 or more.

• 33% don't know how long their money needs to last, rising to 44% among those with $500,000 or more.

• Only 23% of pre-retirees have a clear retirement plan, only 16% of all respondents have a withdrawal strategy, and only 28% work with a financial advisor or planner.

The encouraging part: structure helps. Pre-retirees with a clear plan were 56% more likely to feel comfortable spending on enjoyment, savers with a withdrawal strategy were 52% more likely, and those who have or expect a pension, annuity, or other guaranteed income were 43% more likely to feel they have permission to enjoy their savings.

Why switching from saving to spending is so hard

Part of it is habit. For decades, a rising balance meant you were doing things right. In retirement, a falling balance is often exactly what's supposed to happen, but it can still feel like failure.

Part of it is uncertainty. Respondents' top reasons for holding back were doubt that Social Security will be there (44%), inflation (42%), and health care and long-term care costs (34%), with market risk also a factor for those with $500,000 or more (24%). When you can't predict how long you'll live or what health care will cost, holding on to every dollar feels safe.

And part of it is guilt. Most respondents said they feel guilty spending on discretionary items, rising to 61% for big trips, 63% for entertainment, and 86% for bucket-list purchases like a beach house or sports car. Two-thirds found it hard to justify paying for help like housekeepers or gardeners.

Spending confidence, in other words, isn't just about how much you have. It's about having a clear picture of what your money needs to do.

Step 1: Know what your money needs to do

Fear of running out is hard to argue with when it's vague. A plan makes it specific by mapping out your spending, income sources, taxes, inflation, and how long the money needs to last.

Plan for a long life, not an average one. In the survey, 45% said they'd like to live to at least 90, but only 30% expected to. A plan built for a long life protects you if you beat the odds. And the point isn't just to tell you what you can't afford: it can also show that you can spend more than you've been allowing yourself to.

Step 2: Cover the basics with guaranteed income

In the survey, 58% said they'd feel more comfortable spending if their basics, including emergencies, were covered and they had guaranteed income for life. That's the foundation of a sound income plan: cover essential expenses with income that lasts as long as you do, then spend your savings more freely on top of it.

Social Security is the biggest source of guaranteed income for most people, and timing matters. For people born in 1943 or later, each year you delay past full retirement age, up to age 70, increases your benefit by 8%. For many retirees, especially married couples, delaying is one of the most effective ways to create more guaranteed, inflation-adjusted income.

Pensions can fill more of the gap, and the choice between a lump sum and monthly payments deserves careful analysis. Annuities can turn part of your savings into lifetime income, but you generally give up access to that money, many payments don't keep up with inflation, and some products carry high fees or commissions. The goal is guaranteed income that fits your plan, not a product for its own sake.

Step 3: Have a withdrawal strategy

A withdrawal strategy answers three questions: how much to take, which accounts to take it from, and what to do when markets move.

Keep near-term spending money out of the market: Holding a few years of planned withdrawals in cash and high-quality bonds means a market drop doesn't force you to sell stocks at a loss. That buffer alone can take a lot of anxiety out of spending.

Use flexible spending rules: With guardrails, spending rises after strong markets and trims back modestly after weak ones. Knowing in advance how you'll adjust makes it easier to spend confidently in good years.

Pay attention to taxes: The order you draw from taxable, tax-deferred, and Roth accounts affects how much you keep. The years before required minimum distributions begin in your 70s are often a window for strategies like Roth conversions.

Step 4: Give yourself permission

Even with a solid plan, some people need a nudge to actually use it.

Put enjoyment in the plan: When travel, hobbies, and dining out have their own spending category, spending on them is following the plan, not breaking it. Survey respondents named those three as areas that would bring them more enjoyment.

Spend while you can enjoy it: 42% of respondents said they struggle to balance enjoying experiences now against waiting until it may be too late. Many retirees are most active early in retirement, so planning for higher spending at the start can make sense.

Give while you're alive, and revisit every year: Helping family now lets you see the impact, and an annual review lets you raise spending when things go well instead of holding back indefinitely.

Retirees in the survey were far more likely than pre-retirees to describe retirement as "freedom" (71% vs. 53%). For many people, the reality is better than the worry.

Get a plan that lets you spend with confidence

If you've saved diligently but still hesitate to spend, a clear income and withdrawal plan can show you what you can comfortably afford. Book a 30-minute call and we'll talk through where you stand, with no obligation.

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About the author

Michael Walstedt, CFA, CFP®, is the founder of Reliant Wealth Advisory, a fee-only fiduciary firm in Hoboken, New Jersey. He helps business owners, executives, and professionals in the New York/New Jersey area, as well as nationwide, with financial planning and investment management.

Reliant Wealth Advisory is not affiliated with Prudential Financial. Survey statistics are from Prudential's 2026 Retirement Pulse survey and have not been independently verified. This article is for educational purposes only and is not tax, legal, or investment advice. Consult a qualified professional about your specific situation before making retirement income decisions.