New research from Corebridge Financial reveals a significant disconnect between retirement aspirations and spending behaviors, as only 28% of pre-retirees and retirees report being comfortable drawing down their savings to cover living expenses. The study highlights that while 61% of respondents view retirement as a time to enjoy themselves, 50% associate retirement spending with uncertainty and 44% with anxiety. This reluctance to spend is driven largely by a fear of outliving savings, with 56% citing running out of money while alive as their primary regret compared to just 6% who fear dying with money left over.

The research identifies a substantial planning gap between the accumulation and decumulation phases of retirement. Only 29% of pre-retirees aged 55 or older have a plan for retirement account withdrawals, and merely 14% of retirees possess a detailed strategy to manage their Required Minimum Distributions. This lack of preparation contributes to cautious financial behaviors, as 38% of retirees admit to spending less than they desired to maintain the size of their nest egg. Notably, this hesitation is rarely driven by inheritance goals, as 83% of respondents do not have a specific target for leaving money behind.

Planning Drives Confidence and Satisfaction

The presence of a decumulation plan correlates strongly with financial confidence and emotional well-being. Among pre-retirees aged 55 or older, 57% with a decumulation plan express high confidence in managing spending throughout retirement, compared to only 26% without a plan. Similarly, 55% of retirees with a spending plan are highly confident, versus 29% of those without one. Respondents who are highly confident about managing retirement spending are five times more likely to find the experience "empowering" and three times more likely to find it "rewarding."

Guaranteed Income Preferences

With 60% of respondents expecting to spend at least 20 years in retirement, the study suggests a shift toward guaranteed lifetime income solutions. Nearly three-quarters of respondents believe that having guaranteed lifetime income beyond Social Security would positively impact their ability to spend on happiness. When presented with a choice, 47% of respondents preferred $60,000 per year guaranteed for life over a $1 million lump sum at age 65, which was preferred by 41%. Retirees indicated that guaranteed income would enable increased spending on travel (69%), home improvements (29%), and dining out (25%).

"Retirement is meant to be enjoyed, but many find it difficult to give themselves permission to spend the savings they've worked so hard to build," said Terri Fiedler, President of Retirement Services at Corebridge Financial. "Having a thoughtful decumulation strategy can help individuals manage complex financial decisions and feel more secure about the future." The study, conducted by Greenwald Research, surveyed 2,210 adults aged 45-79 with $100,000 or more in investable assets between October 14, 2025, and November 3, 2025.