MINNEAPOLIS — After decades of saving, many Americans struggle with the idea of actually spending their retirement savings, according to the 2026 Annual Retirement Study* from the Allianz Center for the Future of Retirement, part of Allianz Life Insurance Company of North America (Allianz Life).
Seven in 10 (71%) working Americans say they anticipate being reluctant to spend money in retirement in order to preserve their account balance as much as possible. This feeling continues after leaving the workforce. Nearly two in five (39%) retirees are reluctant to spend to preserve their savings.
The top risks that contribute to being reluctant to spend money in retirement include:
- Outliving savings (50%)
- Future high medical expenses or needing long-term care (50%)
- Unforeseen costs such as major home repairs or emergencies (50%)
- Inflation reducing their purchasing power (48%)
“People spend most of their lives building their savings and it can feel uncomfortable or even wrong to spend that money,” said Kelly LaVigne, VP of consumer insights at Allianz Life. “A written financial strategy can help you understand how much you can comfortably spend and find confidence to spend your money and enjoy your retirement.”
Many retirees have experienced this hesitation. About one in three (32%) retirees say it felt wrong to start drawing down on their assets in retirement after accumulating for decades.
Spending expectations vs. reality
Retirees spend more than working Americans think they will in retirement. The majority of retired Americans (55%) say their current spending in retirement is comparable to 75% or more of their spending while working. Meanwhile, the majority in the workforce (60%) anticipate their spending in retirement to be less than 75% of their current spending.
Fear of regret
Americans worry that they will regret spending too much or too little. While 42% worry they will regret spending too much money early on in retirement, 35% worry they will regret not spending enough money in retirement.
“It’s not just how much you spend – it’s about what you spend it on,” LaVigne says. “When your spending aligns with what matters most to you, whether that is philanthropy or travel, you can feel more confident using your savings without fear of regret.”
The difficulty of predicting expenses in retirement adds to this concern. Three in four (75%) say it is very difficult to know how much money they will need in retirement with the way costs change.
“Many Americans may be financially prepared for retirement, but not psychologically prepared to spend,” LaVigne says. “That’s why retirement strategies need to evolve beyond building assets to managing how assets are used and addressing risks throughout retirement.”
* Allianz Center for the Future of Retirement conducted the 2026 Annual Retirement Study in January 2026 with a nationally representative sample of 1,000 respondents age 25+ with an annual household income of $50K+/$75K+ (single/married) OR investable assets of $150K+.
