Survey Reveals the Retirement Fear Holding Americans Back

For years, the retirement conversation has centered on one question: Will clients have enough money to retire? But new research from Prudential suggests there’s another challenge advisors need to consider: Even when clients have saved enough, they may struggle to feel comfortable spending it. For many retirees, learning to spend may be just as challenging as learning to save.

According to Prudential’s 2026 Retirement Pulse survey, 86% of respondents said they don’t feel free to spend their savings on things they enjoy. Even among those with $500,000 or more in investable assets, 61% said they weren’t comfortable spending for enjoyment.

It’s a reminder that building wealth and feeling wealthy aren’t necessarily the same thing. After decades of being encouraged to save, watch expenses and prepare for the unexpected, some retirees struggle to switch gears. The fear of running out can become so powerful that they sacrifice experiences they spent a lifetime working toward.

The concerns are understandable. Forty-four percent of respondents worry Social Security might not be there for them, while 42% point to inflation and rising living costs. Healthcare expenses and market volatility add to the uncertainty. And more than half would rather leave money behind than risk running out or feel compelled to preserve their assets, and it’s understandable.

But that mindset can come at a cost with 42% saying they struggle to balance enjoying experiences today with saving for a future that may not unfold as expected.

For advisors, this creates an opportunity to shift the conversation from accumulation to distribution. A portfolio balance alone may not give clients the confidence they need. They also need a clear picture of how much they can spend, how long their money may last and which expenses are already covered.

The research offers some encouraging evidence: Savers with a withdrawal strategy were 52% more likely to feel comfortable spending on enjoyment. Those with a clear retirement plan were 56% more likely to feel that way, while people with or expecting guaranteed lifetime income were 43% more likely to feel they had permission to spend.

The takeaway isn’t that clients should spend recklessly. It’s that a retirement plan should do more than protect against worst-case scenarios. It should help clients understand what they can afford to enjoy without jeopardizing their long-term security.

A useful question to ask clients approaching or living in retirement might be: What have you been saving for that you haven’t given yourself permission to enjoy? Sometimes, helping clients make the most of their wealth means showing them not just how to preserve it, but how to use it.

Photo: Shutterstock