Four decades of saving trains you to save. Spending the money is a different skill.
In Prudential Financial’s 2026 Retirement Pulse survey of 3,023 U.S. adults 50 and older, conducted July 27 to Aug. 2, 86% said they do not feel free to spend their savings on things they enjoy.
A bigger balance did not fix it.
Among respondents with $500,000 or more in investable assets, 61% still held back, and 70% of that group said they would rather leave money behind than run out or would prefer to preserve their assets. Across all respondents, the figure was 54%.
The top reasons were doubt that Social Security will be there (44%), inflation (42%) and health care or long-term care costs (34%). Each one is a question a plan can at least attach numbers to.
Who felt freer to spend
Pre-retirees with a clear retirement 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 to use a pension, annuity or other guaranteed income were 43% more likely to feel they had permission to enjoy their savings.
Few had those pieces in place.
Only 23% of pre-retirees had a clear plan, 16% of all respondents had a withdrawal strategy, and 28% worked with a financial advisor or planner. A third did not know how long their money needed to last, and that share rose to 44% among those with $500,000 or more.
A survey shows association, not cause. Savers who feel secure may be the ones more likely to plan. Prudential, which sells retirement products, released the findings.
Three inputs a spending plan needs
The first is a baseline. Households headed by someone 65 or older spent $61,432 on average in 2024, giving households a number to compare against their own.
The second is a withdrawal rate, and the experts do not agree. Estimates of a safe rate run from under 4% to 8%, and the choice changes how long a portfolio lasts.
The third is a time horizon. In the survey, 45% wanted to reach at least 90, but only 30% expected to. Planning to the age people hope for, rather than the one they expect, is a more cautious way to size the money.
Income that does not depend on the market helps too. In the survey, 58% said they would spend more comfortably if they knew their basics, including emergencies, were covered and they had guaranteed income for life.
Many retirees already have guaranteed income through Social Security, and it will rise 3.6% in January 2027, about $75 a month for the average retiree.
Turning the gaps into a plan
If you have $100,000 or more in investments and want help building a withdrawal plan, SmartAsset matches you with up to three fiduciary advisors, who are legally required to prioritize your interests. They can show how taxes, Social Security timing and withdrawals fit together.
The questionnaire takes about 10 minutes and includes roughly 37 questions. It asks for a phone number near the end, and you decide whether and when to respond to anyone. SmartAsset provides matching, not advice.
Add a Comment