Key facts
- 14% of older Americans feel comfortable spending on enjoyment in retirement.
- 39% of those with over $500,000 in investable assets feel comfortable spending for enjoyment.
- Over half of respondents would rather leave too much than risk exhausting savings.
- 42% struggle to balance enjoying the present with saving for the future.
- Nearly half worry about the future of Social Security.
- Two-thirds prefer a guaranteed monthly income over a lump sum.
Many older Americans are hesitant to spend their retirement savings, fearing they will run out of money, according to a survey by Prudential Financial. The 'Fear of Running Out' (FORO) phenomenon means that a significant portion of retirees prioritize preserving their assets over enjoying their savings for hobbies, travel, or dining out.
The 2026 Retirement Pulse survey, which polled over 3,000 American adults aged 50 and older, found that only 14% of respondents felt comfortable spending on enjoyment. This anxiety persists even among those with higher net worth, as 39% of individuals with over $500,000 in investable assets reported comfort with spending for enjoyment. A striking majority, over 50%, stated they would rather leave behind excess savings than risk depleting their nest egg, a sentiment shared by 70% of those with more than $500,000 in assets.
David Blanchette, head of retirement research for Prudential Financial, noted that retirement savings are often viewed as a mountain to be climbed and then spent down, but for most, it's more of a plateau. This perception gap contributes to the difficulty many face in balancing present enjoyment with future security, with 42% of respondents reporting an inability to find this balance.
Concerns about the future of Social Security, inflation, rising living costs, and potential long-term care expenses further fuel spending hesitation. Some individuals, like Ruth Mills and Scott Scovel, shared personal experiences of sacrificing enjoyment earlier in life to save, only to face unexpected challenges or a lack of mental preparation for spending down their accumulated wealth. Scovel, who saved $3 million, continued working out of fear of hyperinflation, highlighting a common advice gap where saving is emphasized but spending strategies are not adequately addressed.
Guilt associated with spending on non-essential items, such as entertainment and adventures, is prevalent, with nearly two-thirds of respondents experiencing it, rising to 86% for larger purchases. Similarly, hiring help for household tasks is often viewed with guilt. Some individuals who have had to spend significantly on caregivers or assisted living have found their mindset shifting out of necessity. Many also return to work part-time to supplement their income and feel more secure. A significant portion of those with substantial savings remain uncertain about how long their money will need to last.
While nearly half of respondents are confident they can cover essential living expenses for life, anxiety is higher among pre-retirees, many of whom lack a clear retirement plan. Prudential experts suggest that guaranteed monthly income, such as through annuities, could alleviate some of these concerns, as two-thirds of respondents prefer this over a lump sum. Despite AI's growing role in financial guidance, most older Americans still prefer consulting human advisors for major financial decisions.