The Retirement Paradox: Why Wealthy Americans Refuse to Spend

The 2026 Retirement Pulse survey, which polled over 3,000 adults aged 50 and older, highlights a psychological hurdle known as FORO—the Fear of Running Out. Only 14% of all respondents feel comfortable spending on lifestyle enhancements like travel or dining. Even among those with more than $500,000 in investable assets, that figure rises only to 39%. Most prefer to preserve their capital rather than risk depleting it, a trend that persists despite the reality that many retirees have already secured their essential living costs.

David Blanchette, head of retirement research at Prudential, notes that the popular image of retirement as a mountain to be climbed is fundamentally flawed. Instead, most retirees face a plateau where the challenge shifts from saving to spending. This transition is often blocked by deep-seated anxiety regarding inflation, the future of Social Security, and the potential for expensive long-term care. For many, the habit of frugality is so deeply ingrained that it becomes difficult to break, even when financial security is achieved. Nearly two-thirds of those surveyed reported feeling guilty when spending on entertainment, with that sentiment climbing to 86% for major purchases.

To bridge this gap, financial experts suggest that retirees may need guaranteed income solutions, such as annuities, to provide the peace of mind necessary to spend. Barbara Pietrangelo, a financial planner with Prudential Wealth Advisors, points out that a reliable monthly check can act as a psychological safety net, allowing retirees to finally authorize the spending they worked their entire lives to afford.