R is for Reluctant Retirees and Using Your Savings

R is for Reluctant Retirees and Using Your Savings

Worrying about your savings as you go through retirement is common among many Americans. Some worry about not saving enough before they retire. But increasingly,  financial advisors are seeing retirees with comfortable savings not using as much of their savings as they had previously planned.

There are a few different reasons why this could be. For example, some retirees may want to leave behind a sizable nest egg for their children. On the other hand, some retirees may be able to live off their Social Security or pension comfortably. And some may be worried about unexpected expenses, such as medical bills, as they age.

This trend appears to be is at odds with projections and inflation. It is important to understand why after saving for your entire working life, one would choose to not spend their savings.

Ultimately, the decision to save or spend your retirement fund is up to you. As long as your basic needs are met and you have paid off any debts, it should be fine to spend what you have. Being prepared for the unexpected can be more vital than buying a vacation house. But it is important to enjoy this part of your life too. Even if it means spending a little bit of that hard-earned money. If you are looking to leave money behind, talk with your financial advisor today about setting up a trust. 

As we plan for retirement and learn from those who are retired now, it is essential to look at all the angles. So, yes, being reluctant to spend your savings can be beneficial. But don’t forget to enjoy your golden years of retirement if you have the savings!

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