A new survey from Corebridge Financial, conducted by Greenwald Research, underscores a persistent psychological hurdle for retirees: the fear of outliving their savings. Among 2,210 adults aged 45 to 79 with at least $100,000 in investable assets, 56% said they would feel worse about running out of money while still alive than about dying with money left over. Only 6% expressed the opposite regret.
The findings, released this month, point to what researchers call a 'decumulation planning gap.' While 61% of respondents view retirement as a time for enjoyment, just 28% feel comfortable seeing their savings decline to cover everyday costs. Half associate retirement spending with uncertainty, and 44% link it to anxiety.
Terri Fiedler, President of Retirement Services at Corebridge Financial, noted that the savings mindset that helps people build wealth can become a liability in retirement. 'Concerns about running out of money often shape spending habits that limit fulfillment later in life,' she said. 'Having a thoughtful decumulation strategy can help individuals manage complex financial decisions and feel more secure about the future.'
The survey reveals a structural gap in planning: only 29% of pre-retirees aged 55 and older have any kind of withdrawal plan. Among retirees, just 14% have a detailed strategy for managing required minimum distributions. Nearly half of all respondents (46%) were unfamiliar with the term 'decumulation' itself.
Confidence levels diverge sharply based on planning. Among pre-retirees aged 55+ with a decumulation plan, 57% report high confidence in managing spending throughout retirement. That figure drops to 26% among those without a plan. For retirees, 55% with a spending strategy feel highly confident, versus 29% without one. Highly confident retirees are five times more likely to describe retirement spending as empowering and three times more likely to call it rewarding.
The dominant withdrawal strategy among retirees is drawing a consistent percentage of assets each year, cited by 34%. Maximizing investment returns is the second most common approach, at 31%. Income-oriented strategies, such as guaranteed lifetime income, appear further down the list but show outsized potential to shift behavior.
Nearly three-quarters of respondents said having guaranteed lifetime income beyond Social Security would meaningfully improve their ability to spend on things that matter. When given a hypothetical choice at age 65, more respondents preferred $60,000 a year guaranteed for life over a $1 million lump sum. Among retirees, 69% said guaranteed income would lead them to spend more on travel, 29% on home improvements, and 25% on dining out.
The research aligns with earlier findings from Vanguard, which emphasized that retirees need an income strategy, not just a savings target. Corebridge's data also echoes concerns about Social Security's timeline; a separate analysis projects a $137,000 shortfall for retirees if insolvency occurs by 2034.
Preserving financial security ranks as the top retirement goal for 85% of pre-retirees and 82% of retirees. Yet 38% of current retirees acknowledge they have spent less than they wanted specifically to avoid shrinking their nest egg. The inheritance motive appears minimal: 83% of retirees have no specific inheritance target and expect to leave behind whatever remains.
'With fewer pensions, Social Security uncertainty and people living longer, it's time to rethink how retirees transition from saving to spending,' Fiedler said. 'Previous strategies and rules of thumb may not cut it anymore. The new paradigm calls for a greater focus on guaranteed lifetime income.'
