Millions of Americans have been saving for decades in anticipation of the day they give up their laptops and never have to work again. But when the day comes, many people fear spending their nest egg.
Prudential Financial’s 2026 Retirement Pulse survey, conducted online between July and August, found that only 14% of respondents felt comfortable spending each month in retirement for pleasure, such as hobbies, travel and dining out. Spending anxiety doesn’t go away among wealthy individuals, as 39% of those with more than $500,000 in investable assets feel comfortable spending for fun.
As Prudential notes, this is a case of FORO, or Fear of Short Out. More than half said they would rather leave too much stuff behind than risk depleting what they have, or preserve what they have without diminishing their assets. This figure rises to 70% for those with more than $500,000. The survey included more than 3,000 U.S. adults ages 50 and older.
A common assumption about retirement planning is that “saving is like a mountain where you climb that mountain, then you save that wealth, then you spend it,” David Blanchett, head of retirement research at Prudential Financial, said during a panel Wednesday. “Actually, for most people, it’s not a mountain. It’s a plateau.”
Prudential found that 42% of respondents said they had failed to find a balance between living in the moment and waiting for life to progress before enjoying it. Many older Americans Business Insider spoke with over the past two years agreed. A few reported making painful sacrifices earlier in life, such as skipping family vacations, hoping to retire at 65, and then being diagnosed with cancer or chronic pain.
“I did a good job of saving for retirement, but so much so that I was too frugal along the way and didn’t enjoy my youth as much because I worked too much,” Ruth Mills, now 64, told Business Insider in late 2024.
Nearly half of those surveyed said they were hesitant to spend because of doubts about whether Social Security would still be available eventually. More than two in five people said inflation and rising costs of living had made them more cautious, while a third cited the costs of long-term care. Most also wanted to live longer than expected, leading many to save as if they would live to be 100.
Scott Scovel had $3 million saved for retirement, but instead of retiring at age 58, he continued working out of fear of hyperinflation. He had saved constantly throughout his life, postponing the joys of life to enjoy his earnings later. However, he was not mentally prepared to retire and dip into his savings.
“For decades, I’ve heard retirement advice encouraging me to ‘save more!’ But no one explained that at some point I would have to radically change my lifestyle and “spend more!” “, he previously told Business Insider.
The survey found that almost two-thirds of respondents felt guilty when spending on entertainment and adventures, with that figure rising to 86% for more expensive purchases, like a beach house or sports car. About two-thirds said it was difficult to justify hiring people to ease the burden of tasks such as cleaning or gardening.
Many older Americans told Business Insider they feel guilty spending money on a caregiver. Some said that as they watched their net worth decline after spending thousands of dollars each month on in-home assistance or home health aides, they were forced to change their mindset, coming to believe that these expenses were necessary for their happiness and well-being.
Some add that they have returned to work, at least part-time, to supplement their social security and feel more secure. Workers with savings in the mid-six figures said they feared living to 100 and using up everything they had accumulated up to that point. As the survey indicates, 44% of those with more than $500,000 in investable assets didn’t know how long their money would last.
Nearly half of those surveyed knew they could cover their essential expenses for life, which brought them some relief. However, anxiety was more apparent among pre-retirees, especially since less than a quarter of them had a clear retirement plan.
Prudential experts said the survey should contribute to the discussion about a guaranteed monthly income, whether in the form of an annuity or another instrument, since two-thirds of respondents said they preferred a guaranteed monthly check to a lump sum. Although AI has been helpful to some older Americans in providing retirement guidance, almost all said they would prefer to consult a human before making a financial decision.
“Oftentimes, that guaranteed income lets them know that they can have an income forever and that extra money allows them to take a nice vacation, redecorate the house, do whatever else they think is important,” said Barbara Pietrangelo, a financial planner at Prudential Wealth Advisors.
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