Most older Americans are reluctant to tap their retirement savings for enjoyment, according to a new survey from Prudential. The 2026 Retirement Pulse study, which polled 3,023 U.S. adults aged 50 and over, found that 86% of respondents lack confidence in their ability to withdraw from their nest eggs and live on them comfortably. Even among those with $500,000 or more in investable assets, 61% said they do not feel at ease spending for pleasure.
David Blanchett, head of retirement research at Prudential and a portfolio manager at Prudential Global Investment Management, presented the findings at a Manhattan event this week. He described the phenomenon as a lack of “permission to spend,” noting that many retirees are caught between the fear of missing out (FOMO) and the fear of running out of money (FORO). “People aren't effectively using their wealth in retirement,” Blanchett said. “Very few Americans are good at accessing their savings via a defined contribution plan.”
The survey quantified the guilt associated with discretionary spending. For big trips and adventures, 61% of respondents felt guilty about spending; for entertainment, that figure rose to 63%. For classic bucket-list purchases such as a beach house, sports car, or jewelry, a striking 86% expressed reluctance.
Despite these anxieties, the research underscores the critical role financial advisors can play. Fewer than a quarter (23%) of pre-retirees have a clear retirement plan, and only 16% of all respondents have a formal withdrawal strategy. Among those with over $500,000 in investable assets, the share with a withdrawal strategy rises to just 31%. Only 28% of all respondents work with a financial advisor or planner.
Barbara Pietrangelo, a financial planner with Prudential Wealth Advisors, emphasized the importance of guaranteed income during the event. “Guaranteed income is huge in helping clients meet their retirement goals,” she said. The survey supports this view: 66% of respondents said they would prefer a guaranteed monthly check for life over a lump sum, and 54% cited “permission to spend and enjoy” as the primary reason for wanting guaranteed income.
The data also show that planning and guaranteed income can significantly boost spending confidence. Pre-retirees with a clear retirement plan are 56% more likely to feel comfortable spending their savings on enjoyment. Those with a withdrawal strategy are 52% more likely, and those who have or expect to use a pension, annuity, or guaranteed income are 43% more likely to feel they have permission to enjoy their savings.
Pietrangelo noted that guaranteed income comes in many forms, and working with an advisor is key to tailoring a long-term plan. “In the guaranteed income, there's lots of flavors and lots of ways of doing it,” she said. “That's where I think working with an advisor and having a long-term plan is so important.”
For advisors, these findings echo broader industry concerns about retirement readiness. A recent Guardian study similarly found that optimism about retirement often clashes with weak financial health. Meanwhile, Goldman Sachs research highlights how household costs are reshaping the economics of retirement saving. As clients grapple with these pressures, advisors who emphasize structured withdrawal plans and guaranteed income may help bridge the confidence gap.
