For decades, Randy Smith approached retirement with discipline and determination. Over a 36-year career in the materials handling industry — including his final five years as a general manager — he consistently set aside a substantial portion of his income. By the end, nearly half of every paycheck was directed into his Health Savings Account and 401(k).

Now 64, Mr. Smith looks back at those years as a period of intense preparation. His wife, LeeAnn Smith, 62, devoted 34 years to teaching elementary school before retiring in 2020. Her retirement income comes from a pension worth roughly half of her former salary.

Despite their steady savings and long careers, the couple — who live in Idaho Falls, Idaho — shared a fear common among retirees: What if the money runs out? Mrs. Smith admits they worried about becoming financially dependent on their children someday, even though they had done everything they were “supposed” to do.

The Emotional Shift From Saving to Spending

Couples like the Smiths often face a surprisingly difficult transition. After spending decades accumulating wealth, they must shift to drawing it down. Financially, they may be secure. Emotionally, however, the move from saving to spending can feel unsettling.

Mark Stancato, founder of VIP Wealth Advisors in Decatur, Georgia, argues that this transition is rarely about numbers alone. Many retirees imagine worst-case scenarios — market crashes, runaway inflation, unexpected medical bills. For some, their identity is closely tied to their ability to save more than they spend. Letting go of that habit can feel like losing control.

In other words, retirement spending is often less a mathematical challenge and more a psychological one.

Regina Neenan, director of cash flow and insurance planning at FPFoCo in Fort Collins, Colorado, frequently hears the same concern from new retirees: “What if I run out of money?” The anxiety intensifies because many people retire during their peak earning years. One day, income flows in steadily. The next, aside from Social Security or a pension, the flow stops — yet expenses continue.

Planning for the Long Term

Before Mr. Smith retired in 2024, the couple consulted a financial adviser to evaluate their full picture. They discussed when to begin Social Security, compared projected annual expenses with their savings and investments, and estimated longevity based on family history. Their projections assumed roughly 30 more years for Mr. Smith and 25 for Mrs. Smith.

The adviser modeled multiple scenarios, including inflation spikes, stock market volatility, rising health care costs and major home repairs. After reviewing the projections, Mr. Smith decided to delay claiming Social Security until age 70 to maximize the benefit.

Seeing the numbers play out under different circumstances gave the couple reassurance. For the first time, they felt confident that spending in retirement did not mean recklessness. It meant living the life they had prepared for.

Why Spending Feels So Difficult

Ashley Quamme, founder of Beyond the Plan in Augusta, Georgia, describes what some retirees experience as a form of “financial dysmorphia.” Even when their balance sheets show ample assets, they still feel financially fragile.

She encourages clients to explore the origins of their money beliefs. For many, frugality was shaped by early life experiences — perhaps growing up during economic uncertainty or watching parents struggle. Acknowledging that spending hard-earned savings can feel emotional is often a powerful first step toward reframing the experience.

Still, becoming comfortable with withdrawals does not happen overnight. It requires structure, perspective and, often, small behavioral changes.

Spending Patterns Change With Age

One helpful insight is that retirement spending naturally evolves. According to research from RAND, annual household spending tends to decline gradually after age 65 — by about 1.7 percent per year for single retirees and 2.4 percent for couples. Early retirement years are often the most active and expensive, filled with travel, hobbies and long-delayed experiences. Later years typically involve fewer large trips and more time at home.

Understanding this pattern helped the Smiths rethink their priorities. They decided to take extended trips — including monthlong visits to Costa Rica and travels across Europe — while they are still physically able. They also budgeted for domestic travel to see their 13 grandchildren.

Mr. Smith describes these as their “go-go years,” recognizing that mobility and stamina will likely change over time. Planning for higher spending early, followed by gradual decline, made their overall strategy feel more realistic.

Recreating the Paycheck Experience

Another challenge retirees face is the disappearance of a steady paycheck. Even with sufficient assets, the absence of predictable income can trigger unease.

Jared Gagne, a wealth manager at Claro Advisors in Boston, often suggests that retirees replicate the rhythm of employment income. By setting up automated monthly transfers from investment accounts into a checking account — perhaps on the first or fifteenth of each month — retirees can simulate a salary. This simple system restores a sense of predictability and helps reduce anxiety.

Market volatility and inflation can amplify concerns. Yet long-term investors often find that diversified portfolios have grown substantially over time, even accounting for rising consumer prices. According to a 2025 Gallup poll, approximately 61 percent of Americans age 65 and older have stock market exposure, whether through individual stocks, mutual funds, 401(k) plans or individual retirement accounts.

For many retirees, following a disciplined withdrawal framework adds clarity. One widely cited guideline is the 4 percent rule — withdrawing roughly 4 percent of total assets annually. For example, a $1 million portfolio could support withdrawals of about $40,000 per year, or roughly $1,538 every two weeks. While not a guarantee, this approach provides a starting point and can be adjusted based on market performance and personal needs.

Starting Small to Build Confidence

Financial confidence often grows through experience. Ms. Neenan sometimes encourages newly retired clients to experiment with modest increases in spending — perhaps an additional $200 per month — rather than immediately expanding their lifestyle dramatically.

The purpose is psychological as much as financial. Clients track how the added spending affects their happiness and then review the numbers to confirm that their long-term plan remains intact. When they see that small indulgences do not derail their strategy, they become more comfortable gradually expanding their enjoyment.

This might mean weekly lunches with friends, short weekend getaways or investing in a new hobby. Incremental changes can ease the emotional shift from saver to spender.

Connecting Money to Meaning

Ultimately, retirees tend to feel more at ease when spending is tied to purpose. Rather than viewing withdrawals as depleting wealth, they can frame them as funding meaningful goals: family vacations, charitable giving, home renovations to age in place or gifts to children and grandchildren.

The mindset shift becomes easier when money is linked to values.

Ed Waggoner, 78, offers a compelling example. After retiring from NASA with a pension two years ago, he began reconsidering how he wanted to use his remaining years and resources. A friend recommended the book Die With Zero by Bill Perkins, which emphasizes maximizing life experiences rather than preserving wealth indefinitely.

Inspired by the message, Mr. Waggoner chose to act while he could still witness the impact. He worked with the Samuel Ginn College of Engineering at Auburn University, his alma mater, to establish a scholarship. He also surprised his two adult sons with a generous financial gift during the holidays.

For him, the greatest reward was seeing their gratitude firsthand. The experience reinforced a simple truth: money has its greatest value when it enhances life in the present.

Redefining Retirement Success

The Smiths’ story reflects a broader reality facing millions of retirees. Decades of disciplined saving can produce a new kind of challenge — learning how to responsibly enjoy what has been built.

Financial security in retirement is not solely about preserving capital. It is about balancing prudence with possibility. With thoughtful planning, realistic projections and an intentional mindset, retirees can move from fear to confidence.

After years of focusing on accumulation, the next chapter is about purpose, fulfillment and shared experiences. For those who have prepared carefully, spending in retirement is not failure. It is the point.