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Prudential’s survey shows that even if their wealth is not low, most retirees and pre-retirees find it difficult to shift from a saving mindset to a spending mindset with peace of mind. This is primarily affected by the uncertainty of Social Security benefits, inflation and medical costs.
I’ve been working hard to save money all my life and here we areretire At this stage, you will not be able to enjoy your savings with mental peace. The “2026 Retirement Survey” released by Prudential Financial shows that 86% of respondents do not feel comfortable spending their savings on their favorite things; Even if their investable assets exceed 500,000 yuan, 61% still feel uncomfortable spending money to enjoy life.
Both pre-retired and retired people have been included in this survey. This shows that retirement worries not only come from “have you saved enough”, but also from how to transform the habit of saving into a habit of spending with peace of mind after working hard to save all your life. For some respondents, the reduction in account balance itself can cause psychological stress.
social Security The future, commodity prices and medical expenses are the main reasons why respondents are afraid to spend money. 44% are worried about whether they can still receive Social Security benefits in the future, 42% are worried about inflation and the rising cost of living, and 34% are worried about medical and long-term care costs. Another 40% would rather leave money unspent than risk running out of savings in retirement.
However, being reluctant to spend money can also mean missing out on the opportunity to still have the energy to enjoy life. 42% of respondents find it difficult to strike a balance between “enjoying life now” and “continuing to wait”, and they worry that by the time they are ready to spend the money, it will be too late. The pullback is more obvious among those with investable assets of more than 500,000 yuan, with a proportion of 51%.
The guilt that comes with spending money isn’t limited to expensive, big-ticket items. 61% of respondents feel guilty about big trips or adventurous activities, and 63% feel the same about spending on entertainment; 67% find it difficult to convince themselves to spend money on cleaners, gardeners or painters to make their lives easier.
Whether you can allow yourself to spend money is not only a financial issue, but also a psychological change, said Leib Littman, chief research officer at research partnership Cloud Research. Many savers are plagued by uncertainty and fear, and are left wondering “What if I run out of money?” There is a need to move forward. To think: “What life experiences will I miss if I don’t use the money I’ve worked so hard to save?”
Prudential Financial argued in the report that retirement preparation should shift the focus from accumulating assets to arranging for retirement income.
Summary FAQ
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Surveys show that retired people are generally afraid to freely use their savings to enjoy life. 86% respondents feel uncomfortable. Even if their net worth exceeds US$500,000, 61% of people still feel worried about spending money, indicating that the psychological change after retirement is more difficult than imagined.
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The main reasons include the future sustainability of Social Security benefits, rising inflation and cost of living, and pressures on medical and long-term care spending. Another 40% would rather leave money unspent than risk running out of savings in retirement.
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Prudential believes that preparing for retirement should not be limited to just accumulating assets, but also requires planning for the rhythm of retirement income and expenses. Experts also remind that instead of just worrying about running out of money, it is better to think about how to enjoy life while still having physical strength.
