Will You Actually Run Out of Cash in Retirement? | Private-finance

Some who could spend more don’t

However, the researchers also found that many of the households that had enough money were spending as if they weren’t. In fact, 29% of the best-funded households had more wealth 10 years after they retired.

This goes down well with financial planners, who say they often have clients who are spending less – sometimes much less – than their wealth would support. Some want to bequeath inheritances for their children or protect themselves from financial shocks like long-term care. In other cases, they just feel more comfortable keeping old habits.

“When you are in the habit of being frugal, you usually stick around that way,” says Dana Anspach, a certified financial planner of Scottsdale, Arizona.

However, people can go too far when fear prevents them from getting the most out of their retirement, Blanchett says.

“You might not end up spending enough money if you could enjoy it more,” he says.

A little planning can go a long way

Choosing the “right” amount of retirement spending is not easy because of all the unknowns, including length of your life and future health. When you have a clear idea of ​​what your retirement spending will be and how much income you can expect, then you can come up with a sustainable spending plan. A good financial planner – preferably a fiduciary adviser who is committed to putting your interests first – could be helpful. Your broker or 401 (k) provider may also have resources to help guide you.