Why Is It So Hard to Spend the Money You’ve Saved?
You’ve spent years working, saving, and preparing for retirement. Now that it’s here, spending that money feels… different.
Maybe you pause before booking that dream vacation, even though you’ve talked about it for years. Or you hesitate on a home project, worried it’s too expensive. Each time you withdraw from your retirement accounts, you stop and think: Am I making a mistake?
If this sounds familiar, you’re not alone. Plenty of retirees struggle with spending—even when they know they have enough.
It makes sense. A 2023 study found that nearly 70% of retirees worry about outliving their savings. After spending decades focused on financial security, switching from saving to spending can feel unsettling—almost counterintuitive.
But here’s the thing: Retirement isn’t just about preserving wealth; it’s about using it to support a life that’s meaningful to you.
So, how do you make that mindset shift? Let’s talk about it.
Why Spending in Retirement Feels So Hard
For most of your working life, the goal was simple: earn, save, and invest for the future. Now? The future is here—and the rules have changed.
Let’s break down why spending in retirement can feel so uncomfortable:
- Losing the paycheck safety net – When you were working, income was steady. Now, withdrawals feel more like deductions than income.
- Worrying about running out of money – Studies show that fear of outliving savings is one of retirees’ biggest financial anxieties.
- Scary headlines about market downturns – Inflation, recessions, stock market volatility—it’s easy to feel like any big purchase is risky.
- Deeply ingrained saving habits – You’ve spent your whole life being responsible with money. Shifting from saver to spender doesn’t happen overnight.
Sound familiar? The good news is that just because these feelings are normal doesn’t mean you have to let them control your retirement decisions.
Making the Shift: Money as a Tool, Not a Goal
A big part of feeling more comfortable with spending comes down to reframing how you think about money.
You might be asking yourself, “Can I afford this?” But why not try this: “Is this something that really matters to me?”
Your savings aren’t just numbers on a screen. They’re a resource—one you built through decades of hard work. They exist to be used, not just protected.
Here’s a better way to think about it:
- If travel has always been important to you, take that trip.
- If you value family, invest in experiences that bring everyone together.
- If you love giving back, consider supporting causes that are meaningful to you.
The goal isn’t to spend recklessly—it’s to spend intentionally. When your money aligns with what matters most to you, the guilt starts to fade.
How to Spend in Retirement Without Worry
Even with the right mindset, financial uncertainty can creep in. That’s why having a solid plan in place can make all the difference.
Set Up a Retirement Paycheck
One of the hardest parts of retirement is losing that sense of steady income. But here’s the thing: you can create your own paycheck in retirement.
A well-designed withdrawal strategy ensures that your income remains consistent while keeping your portfolio healthy.
You might consider:
- Sustainable withdrawal strategies – The 4% rule (withdrawing 4% annually) remains a reasonable starting point for most retirees, but adjustments should be made based on your specific situation.
- Using multiple income sources – Social Security, pensions, and annuities can help create a stable cash flow, reducing reliance on market-driven investments.
- Tax-efficient withdrawals – Pulling funds from tax-deferred, taxable, and Roth accounts in the right order can help reduce your overall tax burden.
A structured plan takes the guesswork out of spending—and makes it feel more natural.
Keep a Safety Net
One reason retirees hesitate to spend is fear of the unknown. What if an emergency pops up? What if healthcare costs skyrocket?
Here’s the simple solution: keep an emergency fund.
- A Fidelity study estimates that the average 65-year-old couple will need about $315,000 for healthcare expenses in retirement.
- Having a dedicated emergency fund for things like home repairs, medical bills, or market downturns gives you the confidence to spend without constant worry.
Give Yourself Permission to Enjoy Your Money
Look, there’s a difference between reckless spending and spending with purpose.
You’re not throwing money around—you’re using it to enhance your quality of life. Retirement should be about balance: keeping your financial foundation strong while also embracing the opportunities you’ve worked so hard for.
When you have a plan in place, you don’t have to feel guilty about enjoying what you’ve built.
How a Financial Advisor Can Help
If you’re feeling stuck between wanting to enjoy your retirement and fearing you’ll mismanage your savings, you’re not alone. It’s one of the biggest concerns retirees have.
A financial advisor can help you:
- Develop a clear withdrawal strategy so you know exactly how much you can spend each year.
- Adjust your plan as needed to adapt to changes in the economy, taxes, or your personal situation.
- Give you reassurance that you’re making smart financial decisions—without all the stress.
At Falbo Wealth Management, we help retirees create a structured financial plan so they can spend with confidence.
Your money should work for you—not just sit there unused because of fear.
Reminder: Retirement Is Meant to Be Enjoyed
You didn’t work and save all these years just to feel stressed every time you withdraw money. You built this financial foundation so you could enjoy life.
If you’re struggling with the transition from saving to spending, let’s talk. Book a time for us to chat, and we’ll create a plan that helps you feel confident about using your money the way it was meant to be used.
The opinions expressed in this material are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security, investment, or other financial product.
The opinions expressed in this material are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security, investment, or other financial product.