By Dave Smith, The Ultimate Retirement Coach
Are You Underspending in Retirement Without Realizing It?
Many retirees today are financially secure—but emotionally hesitant when it comes to spending. After decades of diligent saving, budgeting, and prioritizing financial responsibility, shifting to a lifestyle of intentional spending can feel deeply uncomfortable.
But here’s the truth: You didn’t save all that money just to keep saving. You saved it so you could live.
If you’re approaching or already in retirement and find yourself hesitating to spend—even when you can afford to—this post is for you.
Why Retirees Underspend: The Hidden Psychology Behind It
In retirement, the fear of running out of money—even when it’s irrational—can quietly dominate your decision-making. This scarcity mindset is common, especially among those who’ve spent decades in a “save and accumulate” mode.
The result? You underspend in retirement, missing out on joy, freedom, and the meaningful life experiences your wealth was meant to provide.
Common signs you may be underspending:
You feel guilty when splurging on yourself.
You constantly worry about “what if” scenarios despite a strong financial foundation.
You pass on experiences you can afford, out of habit or fear.
The #1 Retirement Mindset Shift You Need: Spend With Intention
Ask yourself this powerful question:
If you knew you only had ten healthy years left, how would you spend your time, energy, and money differently?
Here is a worksheet to log & share your your thoughts!
This question isn’t meant to be morbid—it’s meant to be motivating. Because retirement isn’t about preservation of assets; it’s about living your richest possible life.
A Practical Step to Break the Fear-Based Saving Habit
Here’s one simple but transformative exercise to help you build a new relationship with your money:
💰 Create a “Must-Spend” Fund
Set aside 5–10% of your annual retirement income or portfolio drawdown.
Label this your Intentional Spending Fund.
The only rule? You must spend it within the year—no rollover, no guilt.
Use it for anything that brings joy, connection, or meaning: travel, family, art, hobbies, giving, learning.
This isn’t a “nice to have.” It’s a required self-permission system to help shift from fear-based saving to value-based spending.
Retirement Is Not a Waiting Game—It’s a Living Game
It’s easy to measure success by your retirement account balance. But the real question is:
Are you using your wealth to create the life you envisioned?
Don’t let old money habits rob you of the vitality, freedom, and joy you’ve earned. To learn more here is a White Paper on the Decumulation Paradox.
To a rich life,
Dave Smith
The Ultimate Retirement Coach