Savers vs. spenders: How money management attitudes impact financial confidence

When it comes to money management and retirement planning, it’s better to be a saver than a spender, right?

While the answer may be intuitive, its application to retirement preparation is sometimes counterintuitive.

A recent study by Jackson National Life reveals some interesting differences.

The psychology of savers vs. spenders

Exploring the psychology behind saving and spending reveals how emotions, habits and values shape financial decisions. By understanding behavioral drivers, individuals can create strategies to strengthen their financial health and align with long-term goals. Mastering this balance can help empower retirement investors to turn intention into lasting financial success.

The Jackson report, “Savers Mindset Study: Insights On The Psychographics Of Saving And Spending Among Retirement Investors,” uncovers the mindset behind saving and spending, and how these two distinct groups, “savers” and “spenders,” form habits and attitudes that influence their success in planning for retirement.

Who savers and spenders are

Savers and spenders are identified in the study as having similar financial awareness of retirement needs, but the focus is higher among savers.

Spenders are more likely to be younger, employed and to carry debt and loans. Savers are more likely to be fully retired, have higher education, own their home, have higher incomes ($100,000 and above) and assets ($500,000 and above), and be debt-free. Their friends and family are also likely to be savers.

In addition, half of savers know how much income they need in retirement and believe they are on track to meet their goals. Meanwhile, two-thirds of spenders worry about having enough money in retirement, and only about one-third believe they are on track with their savings.

It’s important to note that people migrate between the two realms. Around 28% of those in the study reported shifting from one attitude to the other over the past 10 years, while 22% anticipated evolving their approach to money over the next 10 years.

How savers and spenders think about money

When it comes to money management, savers tend to put less importance on material possessions and are more future-oriented. They are willing to save for a rainy day rather than give in to instant gratification. Savers also tend to seek out financial literacy sources, which strengthens their investment confidence.

Spenders find joy in owning things and living in the moment. However, many feel overwhelmed by financial information and struggle to stay on track with their financial planning. This results in Spenders feeling behind with their financial planning and experiencing more stress when thinking about money.

Both groups recognize future financial risks, but Savers take a more disciplined, forward-looking approach. They track their money, save consistently and look for bargains.

Here’s the counterintuitive part. Savers look to guaranteed income sources as a way to protect savings, rather than as a tool for spending with confidence. They recognize the value of a defined outcome in ways that spenders do not.

Why it matters

These varying approaches result in significantly different financial outcomes. Savers express higher satisfaction, not only with their finances, but also with their emotional, physical and social well-being. Roughly three-quarters of savers feel satisfied with their financial situation, compared to only half of spenders.

Their concerns differ as well. Spenders often face past-due bills and worry about debt, while savers focus on market volatility and investment performance.

Can spenders become savers?

Of course, spenders can become savers. But it takes discipline.

If an individual investor identifies as a spender, they can work toward disciplined saving and greater confidence through structured planning and financial education.

Savers can improve too. They can learn to manage risk and optimize their investments through education and seeking professional advice.

Recognizing whether they lean toward saving or spending enables investors to turn insight into action. They can refine habits, build confidence and create a stronger foundation for long-term financial well-being.

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