Many retirees in the United States find it challenging to transition from a lifetime of saving to spending their retirement funds, according to recent survey data and financial advisers. While saving is emphasized heavily during working years, spending down those savings after retirement evokes significant hesitation.

A survey conducted by Allianz Life in 2026 found that 39% of current retirees expressed reluctance to use their retirement savings. Among working-age Americans, 71% anticipated they would face difficulty spending their retirement funds when the time comes. Financial planners observe that this hesitation is common and often requires active encouragement.

Melissa Cox, a certified financial planner in Dallas, noted that about half of her retired clients struggle with spending money from their savings, regardless of their financial status. “It’s hard to get somebody to even go out and spend five dollars for a cup of coffee,” she said, highlighting how ingrained saving habits can be. Cox recounted working with clients who resist essential expenditures, such as vacations, despite needing rest.

The psychological transition from saving to spending is often described in two phases. The first phase, known as accumulation, involves building retirement savings through income, investments, and accounts such as 401(k)s. The second phase requires retirees to draw down those savings to cover living expenses. Experts say many retirees find this second phase intimidating, as it involves shifting from regular paycheck income to a fixed retirement income.

Jonathan Swanburg, a certified financial planner in Houston, explained that retirees face the difficulty of adjusting to income they cannot increase through raises or job changes. Instead, the primary control retirees have to manage their finances is through their spending habits. Similarly, Peter Lazaroff of St. Louis emphasized that good savers often struggle to spend their money once retired, as they are accustomed to conserving resources.

This cautious approach is exemplified by Gerry Elam, a 68-year-old retiree from Opelika, Alabama, who retired early amid pandemic-era workforce reductions. Despite having sufficient funds, Elam finds himself overanalyzing purchases, especially those exceeding a few hundred dollars. “The biggest change for me is going from saver to spender,” he said.

Underlying this hesitation is a common and well-founded fear among retirees: the risk of outliving their savings. Kelly LaVigne, vice president of consumer insights at Allianz, said running out of money is the top financial concern for those approaching retirement. However, she also cautioned against delaying expenditures that are personally meaningful.

Lazaroff addressed the competing risks retirees face—overspending and exhausting resources, or underspending and living with regret. “If all you do is worry about running out of money, you’re not going to spend enough,” he said. “You’re going to end up dying with regret.”

Financial advisers increasingly focus on helping retirees strike a balance between prudently managing their savings and allowing themselves to enjoy retirement without undue fear.