Prudential Survey: 86% of Americans Feel Guilty Spending Retirement Savings

Key points

• Prudential's 2026 Retirement Pulse survey of 3,023 adults aged 50+ found that 86% lack confidence in spending savings for enjoyment.
• Only 14% of respondents feel comfortable spending on hobbies or travel, a figure that rises to just 39% for those with over $500,000 in investable assets.
• Nearly two-thirds of respondents prefer a guaranteed monthly income over a lump sum, citing it as a way to gain 'permission to spend.'
• 44% of respondents doubt the long-term availability of Social Security, while 42% cite inflation as a primary reason for spending hesitation.
• Only 16% of all respondents have a formal withdrawal strategy, and just 23% of pre-retirees have a clear retirement plan.

Background

This finding aligns with earlier 2026 reports, such as an Allianz study showing 39% of retirees are reluctant to spend savings, and broader concerns about working until death due to inflation. Previous coverage also highlighted that childless Americans and those in the FIRE movement face distinct planning challenges, but the current data emphasizes a universal psychological barrier to spending across all wealth levels.

How outlets are covering it

Business Insider highlights the emotional toll, noting that nearly two-thirds of respondents feel guilt when spending on entertainment, rising to 86% for luxury items like sports cars. Barron’s focuses on the behavior of wealthy retirees, noting that even those with substantial assets hoard their nest eggs due to anxiety. InvestmentNews and the press release from Prudential emphasize the solution: they argue that guaranteed lifetime income, such as annuities, can provide the psychological 'license to spend' that retirees lack. All sources agree that the issue is not just financial but psychological, driven by a 'Fear of Running Out' (FORO) that outweighs the 'Fear of Missing Out' (FOMO).

Why it matters

The reluctance to spend savings may lead to a 'saver’s paradox' where individuals die with significant assets unused, potentially impacting the broader economy and personal well-being. As inflation and healthcare costs rise, the inability to access savings for quality-of-life improvements could exacerbate financial insecurity among older Americans, despite having adequate assets.

What to watch

Financial advisors are expected to push for more guaranteed income products, such as annuities, to help clients feel secure. Prudential and other firms may develop new planning tools that focus on 'permission to spend' rather than just accumulation. The industry may see a shift in marketing toward lifetime income solutions to address the psychological barriers identified in the survey.