Americans Hesitant to Spend Retirement Savings Despite Decades of Accumulation — Allianz Life Insurance Company of North America

Event summary

71% of working Americans anticipate being reluctant to spend money in retirement to preserve their savings.
39% of retirees are reluctant to spend to preserve their savings, with 32% feeling it was wrong to start drawing down assets.
55% of retired Americans spend 75% or more of their pre-retirement spending, while 60% of working Americans expect to spend less than 75%.
Top concerns include outliving savings (50%), future medical expenses (50%), unforeseen costs (50%), and inflation (48%).

The big picture

Allianz Life's study highlights a significant behavioral shift needed among retirees, who are financially prepared but psychologically unprepared to spend their savings. This trend underscores the growing importance of holistic financial planning that addresses not just asset accumulation but also sustainable withdrawal strategies in retirement. The findings come at a time when the insurance and financial services industry is increasingly focusing on long-term care and inflation protection solutions.

What we're watching

Psychological Barriers: How Allianz Life's findings on psychological reluctance to spend will influence retirement planning strategies.
Spending Expectations: Whether the gap between anticipated and actual spending in retirement will widen as more Americans retire.
Financial Strategy Evolution: The pace at which retirement strategies evolve to address both asset accumulation and sustainable spending.