Retirees probably consider taxes, inflation or healthcare their biggest expenses. But there is another factor that can quietly cost far more: fear.<\/p>\n
Without the security of a regular paycheck, it\u2019s easy to worry about running out of money in your so-called \u201cgolden years.\u201d In fact, 64% of Americans say they are more worried about outliving their savings than dying, according to a 2025 survey by Allianz Life (1).<\/p>\n
Although this anxiety about money isn\u2019t entirely unjustified, making major financial decisions while driven by fear can be costly. The consequences may be both substantial and hard to see.<\/p>\n
Here\u2019s why many retirees are afraid to spend their own money \u2014 and how that hesitation can reduce their quality of life.<\/p>\n
It\u2019s easy to assume that financial fear is inversely correlated with financial resources. In other words, the more money you have, the less afraid you are. However, research suggests financial anxiety is often disconnected from actual financial capacity.<\/p>\n
Married couples over age 65 with at least $100,000 in savings withdrawal at an average annual rate of 2.1%, according to Prudential Financial data cited by the Wall Street Journal (2). That\u2019s far below the commonly referenced \u201c4% rule<\/a>,\u201d which is often cited as a rough benchmark for sustainable retirement spending.<\/p>\n Surprisingly, some retirees avoid withdrawals entirely. Roughly 27% of retirees over age 60 with retirement accounts monitored by Vanguard took no withdrawals during their first five years after leaving their employer (3).<\/p>\n Simply put, many retirees are too afraid to spend their own hard-earned money.<\/p>\n For many, this extreme frugality can mean missed opportunities to spend time with family, take vacations or enjoy personal hobbies. It can also carry a real \u2014 though often overlooked \u2014 quality-of-life cost.<\/p>\n Read More: The average net worth of Americans is a surprising $620,654. But it almost means nothing. Here\u2019s the number that counts (and how to make it skyrocket)<\/a><\/p>\n A sense of dread can push many retirees toward financial products that feel safe and secure but may undermine long-term wealth if used excessively or at the wrong time.<\/p>\n Story Continues <\/p>\n Nearly half (48%) of investors said they shifted assets into more conservative investments during market downturns, according to a 2025 Nationwide survey (4). In practical terms, this often means selling after prices fall \u2014 locking in losses and reducing exposure to future recoveries.<\/p>\n Being too conservative with your investment decisions, primarily because of fear, could be an expensive mistake. You could miss out on substantial long-term growth and financial security simply because you made an impulse decision during a stock market crash.<\/p>\n Similarly, overpaying for certain annuities or holding large amounts of cash out of concern about volatility can erode purchasing power \u2014 and ultimately slow portfolio growth over time.<\/p>\n Fortunately, there are ways to overcome this emotional response.<\/p>\n The antidote to emotional, fear-based investing, according to research conducted by Melissa Knoll, vice president of behavioral science at Fidelity, is a disciplined, rules-based approach (5).<\/p>\n Instead of relying on willpower or personal instincts, Knoll recommends using professional portfolio management or automated investing tools that help maintain consistent contributions and allocations regardless of market volatility.<\/p>\n For example, enrolling in automatic contributions to a 401(k) or a dividend reinvestment plan (DRIP) makes investors less likely to shift assets into conservative investments during market downturns.<\/p>\n Knoll also suggests checking your retirement accounts less often. Investors who frequently monitor their portfolios are less likely to accept risk and could be more prone to reducing their long-term growth.<\/p>\n Besides, if you\u2019re checking retirement accounts less frequently. Investors who constantly monitor their portfolios tend to be more risk-averse and more likely to make short-term decisions that can potentially reduce long-term returns.<\/p>\n And if you\u2019re checking your accounts multiple times a week, retirement can start to feel like a second job \u2014 replacing paid work with unpaid portfolio management.<\/p>\n Hours spent watching financial news, reacting to market swings or studying stock charts are hours not spent with family, friends or on the activities that made retirement appealing in the first place.<\/p>\n Don\u2019t let fear and short-term market noise dominate what should be your most flexible years. A time-tested plan \u2014 supported by diversification, automation, and periodic rebalancing \u2014 reduces the need for constant oversight. Set the strategy, review it occasionally, and allow time to do the heavy lifting.<\/p>\n Join 200,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n Allianz (1<\/a>); Wall Street Journal (2<\/a>); Vanguard (3<\/a>); Nationwide (4<\/a>); Fidelity (5<\/a>).<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Retirees probably consider taxes, inflation or healthcare their biggest expenses. But there is another factor that can quietly…\n","protected":false},"author":2,"featured_media":475881,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[5012,28,155,1168,220340,147,530,1666,733,17012],"class_list":{"0":"post-475880","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-allianz-life","9":"tag-business","10":"tag-dave-ramsey","11":"tag-jeff-bezos","12":"tag-melissa-knoll","13":"tag-personal-finance","14":"tag-personalfinance","15":"tag-retirement","16":"tag-social-security","17":"tag-wall-street-journal"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/475880","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=475880"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/475880\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/475881"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=475880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=475880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=475880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}