Two-fifths of retirees are reluctant to spend their savings
A survey by Allianz Life reveals that a significant portion of retirees are hesitant to spend their savings, despite having built them for that purpose. Financial advisors often struggle to help clients transition from an accumulation mindset to a distribution mindset.
Why it matters
The psychological barrier to spending retirement savings impacts the financial well-being of retirees and the broader economy.
Hear this story American workers are told to spend their entire career saving for retirement, building a nest egg that they dare not touch.
When that career ends, retirees are expected to break the nest egg and begin spending it down.
For many Americans, the transition from saving to spending does not come easy.
In a recent survey by Allianz Life, 39% of retirees said they are reluctant to spend their retirement savings. And 71% of working-age Americans said they expect to be reluctant about spending retirement funds when the time comes.
Financial advisers say one of the biggest parts of their job is persuading clients, even the rich ones, to spend their savings in retirement.
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