Most Americans 50 and Older Say They Can’t Relax About Spending Their Savings. Why?

Even households with sizable portfolios often hesitate. Those who felt more comfortable spending shared a few traits.

After decades of saving, spending can feel unfamiliar.

In Prudential Financial’s Retirement Pulse survey of 3,023 U.S. adults age 50 and older, 86% said they do not feel free to spend their savings on things they enjoy.

Having more money did not erase that concern.

Among respondents with $500,000 or more in investable assets, 61% still held back. In that group, 70% said they would rather leave money behind than risk running short or preferred to preserve their assets. Across all respondents, the share was 54%.

The leading worries were whether Social Security will still be there (44%), inflation (42%), and health care or long-term care costs (34%). Each of those concerns is something a retirement plan can at least try to quantify.

Who felt freer to spend

Pre-retirees with a clear retirement plan were 56% more likely to feel comfortable spending on enjoyment. People 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.

But relatively few respondents 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. One-third did not know how long their money needed to last, and that rose to 44% among those with $500,000 or more.

The survey shows correlation, not causation. People who feel secure may simply be more likely to plan. Prudential, a company that sells retirement products, released the findings.

Three ingredients for a spending plan

The first is a benchmark. Households headed by someone age 65 or older spent an average of $61,432 in 2024, offering a reference point for comparison.

The second is a withdrawal rate, and experts disagree on the right number. Estimates of a safe rate range from under 4% to 8%, and the choice affects how long a portfolio may last.

The third is a time horizon. In the survey, 45% hoped to live to at least 90, while only 30% expected to. Planning to the age people hope for, rather than the age they expect, is a more conservative way to size savings.

Reliable income that does not depend on the market also helps. In the survey, 58% said they would spend more comfortably if they knew their essentials, including emergencies, were covered and they had guaranteed income for life.

Many retirees already receive guaranteed income through Social Security, which will rise 3.6% in January 2027, or about $75 a month for the average retiree.

Turning uncertainty into a plan

If you have $100,000 or more invested and want help creating a withdrawal plan, SmartAsset can match you with up to three fiduciary advisors, who are legally required to put your interests first. They can help show how taxes, Social Security timing and withdrawals work together.

The questionnaire takes about 10 minutes and includes roughly 37 questions. A phone number is requested near the end, and you choose whether and when to respond. SmartAsset offers matching, not advice.