You’ll probably never spend your retirement savings completely — don’t live your ‘go-go’ years full of worry. Here’s why

You’ll probably never spend your retirement savings completely — don’t live your ‘go-go’ years full of worry. Here’s why

Vishesh Raisinghani

Wed, September 2, 2026 at 3:25 PM GMT+3 6 min read

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Running out of savings in old age is the biggest fear for many retirees. In fact, 67% of Americans are more worried about outliving their money than death itself, according to an Allianz Life study (1).

This persistent fear of a drained bank account could be pushing millions of seniors into uncomfortably tight budgets or risky personal finance behavior, but here's the strange part: the data says most retirees never come close to running out.

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Despite all the fear-mongering about retirement savings and inflation, most retirees actually underspend their nest eggs.

Here's a closer look at this surprising spending paradox and why you may want to reconsider your own retirement plans.

Retirement spending paradox

The standard retirement rule of thumb for most seniors is the 4% rule. Financial experts and advisors generally recommend withdrawing 4% of assets every year to fund retirement needs without the risk of depleting cash over the long-term.

Got $1 million in savings? That's just $40,000 per year.

However, a study by David Blanchett and Michael Finke found that retirees actually only spend half of their available savings in retirement (2). A typical married couple of 65-year-olds with at least $100k in assets withdraw just 2.1% per year from qualified and non-qualified accounts. That's roughly half the 4% rule.

Another study by the Employee Benefit Research Institute found that many retirees barely touch their nest eggs (3). Roughly 21 to 22 years into retirement, all wealth groups "saw significant retention — and even accumulation — of assets." Two decades into retirement, 37% of low-asset, 48% of middle-asset and 42% of high-asset seniors had preserved roughly 80% of the assets they retired with.

Simply put, the fear of outliving your money could be overblown.

And this fear could be costing you something far more precious: your healthiest and most active years. The average health-adjusted life expectancy for U.S. adults is 63.4, according to the World Health Organization (4). This is the age where, on average, you can be expected to be in "full health."

That means you could be underspending and making sacrifices in the few years where you're still healthy enough to enjoy that trip to Europe or kayaking.

With this in mind, you may want to modify your retirement plan to enhance comfort and enjoyment in your "go-go" years.

Read More: Millionaires under 43 hold only 32% of their wealth in stocks. Here's where their money is actually going

Planning a better retirement

If data doesn't ease your concerns about retirement, an extra safety net in a rock-solid asset class could help. Gold, for instance, is traditionally considered a safe haven by investors worried about inflation and the depreciating value of their dollar. After all, the precious yellow metal can't be printed at will by central banks, and supply is limited by extraction.

And besides, withdrawing 4% from a portfolio during a down year could shave years off your retirement runway.

One way to protect yourself, while snagging some tax advantages, is through a Gold IRA.

Opening a gold IRA with the help of Goldco allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA.

With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.

If you're curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.

Another way to ease your budget concerns is to tap into discounts and offers that reduce the price of everyday necessities. An AARP membership could give you access to discounts on almost everything — from prescriptions and dental plans to travel, entertainment and insurance.

AARP members get access to guides that can help you make the most of Social Security, choose the right Medicare plan and uncover other government benefits. This can help take some of the psychological pressure off keeping your savings on ice.

Even better, if you sign up with AARP today, you can get 25% off your first year.

Once you have a plan for your withdrawals, it may be a good idea to make sure that those who come after you are taken care of — especially if you're planning to make full use of your savings.

If you want to ensure your family isn't hit with unexpected costs after your death, consider signing up for term life insurance from Ethos. The platform offers simple and affordable coverage for a set period of time — typically between 10 and 30 years.

As a licensed third-party insurance administrator, Ethos has joined forces with some of the industry's top insurance carriers, such as Banner Life, TruStage Financial and Ameritas Life Insurance.

Ethos gives you the flexibility to select coverage amounts ranging from $2,000 to $100,000. Premiums start at just $9.80 a month and are guaranteed throughout the term.

You can get coverage in just 10 minutes online or by phone, with no medical exams or blood tests required.

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Article Sources

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Allianz Life (); Wiley Online Library (); EBRI (); World Health Organization ()

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.