How To Safely Spend Your Retirement Savings

Many retirees plan to spend their retirement savings quite frugally, according to a few recent reports and studies. For example, a recent survey report, To Spend or Not to Spend from Blackrock, shares that retirees prefer to keep their assets untouched and that just one in four survey respondents feel they need to spend the principal of their savings in retirement. According to the report, “For most, retirement is not a time to live it up, it is more important to feel financially secure.”

Similarly, the 2024 Retirement Confidence Survey from the Employee Benefit Research Institute reported that more than one-third of retirees (38%) have a savings mindset, meaning they want to spend less and save for the future. If this mindset continues throughout life, some retirees might end up passing away with a lot of money in the bank, money they might have been able to spend and enjoy while they were alive.