Are You Being Too Frugal in Retirement?

You might be surprised how common it is to be so afraid to spend that you don’t fully enjoy your retirement. But there are things you can do about that. Here are four tips if your fears are holding you back.

A woman peers into her empty change purse.
(Image credit: Getty Images)

You’ve worked hard your entire life, and now it’s time to enjoy the fruits of your labor. You have saved, you have budgeted, and you have prepared for this moment for almost all of your working years. But, despite all of these efforts, you are still afraid. You are afraid to spend your hard-earned savings. You are afraid that you are going to live so long that you run out of money.

Irrational? Actually, it’s very common and in many cases, the worry might be warranted. However, for many — particularly those who have planned properly — the fear is likely unfounded. This overwhelming fear can actually lead to something that does not get much attention: underspending in retirement.

Underspending in retirement is more common than you would think, and it can lead to a less-than-satisfying retirement lifestyle, defeating the purpose of all of that planning.

So how do you strike the right balance between common-sense frugality and frivolity? Here are four tips to help you loosen the purse strings and live a little!

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Kelly LaVigne, J.D.
Vice President, Advanced Markets, Allianz Life

Kelly LaVigne is vice president of advanced markets for Allianz Life Insurance Co., where he is responsible for the development of programs that assist financial professionals in serving clients with retirement, estate planning and tax-related strategies.