Prudential: Unease Over Discretionary Spending in Retirement Is Commonplace

Although building a retirement nest egg is a challenging task, many retirees find spending that money to be potentially more daunting. Prudential Financial Inc.’s recently published 2026 Retirement Pulse Survey found that only 14% of surveyed retirees and pre-retirees felt at ease spending retirement savings each month on things they enjoyed.

Forty percent of respondents said they would rather leave money behind than risk depleting their savings, and 29% said having an unchanged bank account was a source of pride. Even among respondents with more than $500,000 in investable assets, 61% reported discomfort about discretionary spending, and 70% said they wanted to leave or bequeath money, rather than deplete it.

Overall, most respondents also reported experiencing guilt over their discretionary spending, with 86% reporting unease over bucket list purchases such as a beach house, sports car or jewelry; 67% having difficulty justifying hiring workers such as housekeepers and gardeners; and 61% feeling guilt about taking major trips.

“If people can’t enjoy their retirement savings, what was the point [of saving]?” asked David Blanchett, Prudential Financial’s head of retirement research, at a recent media event in New York.

Among respondents, the most-cited concerns and reasons for not spending included the uncertain future of Social Security (44%), inflation (42%) and healthcare and long-term care costs (34%). One-third of respondents said they did not know how long they needed their money to last, with that number rising to 44% among those with at least $500,000 in investable assets.

Matching similar studies, Prudential’s respondents reported a widespread lack of retirement planning, with only 23% of pre-retirees saying they had a clear retirement plan, and 16% of all respondents reporting a savings withdrawal strategy. Additionally, only 28% of all respondents said they were working with a financial adviser or planner.

Anecdotally, experts at Prudential’s recent presentation said clients often seek assurance of whether they could afford certain items in retirement. Many survey respondents would give similar reassurance to friends, with 49% saying they would advise friends to spend money on things they enjoyed.

“I have to give [my clients] permission to spend,” said Barb Pietrangelo, a financial planner at Prudential.

The study found that financial planning improved spending confidence, with 56% of respondents with a retirement plan and 52% with a withdrawal strategy feeling more confident about spending retirement savings.

Prudential Financial, which offers insurance products, also found that 43% of respondents agreed that guaranteed income would improve their spending confidence. Two-thirds of respondents preferred guaranteed monthly payments for life to a lump-sum distribution, and 58% said they would feel more comfortable spending if they knew essential expenses and emergencies were covered by guaranteed income.

The survey was conducted in partnership with CloudResearch, gathering online responses from July 27 through August 2 from 3,023 U.S. pre-retirees and retirees aged at least 50.