A rising retirement challenge: The license to spend

NEWARK, N.J., Oct. 1, 2026 – A new study released by Prudential Financial, Inc., the 2026 Retirement Pulse survey, shows that many retirees need guidance, clear withdrawal strategies, and guaranteed lifetime income to feel they have a “license to spend” on things they enjoy.

Concerns about saving enough for retirement — and the fear of running out — have been widely documented. Prudential’s Retirement Pulse survey reveals a new angle: After a lifetime of being taught to save for retirement, many of today’s retirees resist tapping into their savings when the time actually comes. Eighty-six percent of respondents reported that they don’t feel free to spend their savings on things they enjoy. Even among those with $500K or more in investable assets, 61% still do not feel comfortable spending for enjoyment.

For more than 20 years, Prudential’s Pulse survey series has studied broader economic workplace and retirement trends impacting Americans. The 2026 Retirement Pulse survey explores the psychology of retirement, identifying the emotional and behavioral drivers of retirement spending confidence and the role guaranteed income can play in helping retirees achieve a more secure and fulfilling retirement.

The Saver’s Permission Paradox

The 2026 survey suggests an identity shift: Lifetime savers must learn to become thoughtful spenders while navigating worries about Social Security, inflation, healthcare costs, market risk, and longevity.

“What stands out in the research is that spending confidence isn’t simply a function of wealth,” says David Blanchett, head of retirement research, Prudential Financial, and portfolio manager, PGIM. “The industry needs to help grant people a license to spend. The solution lies in planning tools and advice that transform uncertainty into confidence, helping retirees support not only their needs but their dreams in retirement.”

• Uncertainty and risks as top barriers: Most respondents agree on the factors topping their lists of spending hesitation: doubt that Social Security will be there (44%), inflation/rising cost of living (42%), and healthcare costs/long-term care costs (34%), with market risk also a factor among respondents with higher asset levels (24% among those with $500K+ in investable assets).

• FORO (Fear of Running Out): The research points to a powerful counterweight to retirement enjoyment — among savers, 40% would prefer to leave money behind over the risk of running out, and over a quarter feel proud watching their balance not decrease. Combined, over half (54%) reported that they would rather leave money behind than run out in retirement or preserve their assets, rising to 70% among those with $500K or more in investable assets.

• Trading saving for living — before it’s too late: Close to half (42%) struggle to balance enjoying experiences now versus waiting until it may be too late, with this tension felt even more strongly by those with more savings (51% among those with $500K or more in investable assets).
• Spending associated with guilt: Most respondents say they experience guilt when spending on discretionary items. That percentage increases when it comes to spending on things like big trips and adventures (61%), entertainment (63%), and classic bucket-list purchases, such as a beach house, sports car, jewelry, etc. (86%). And 67% of total respondents find it hard to justify hiring help to make life easier (housekeepers, gardeners, painters, etc.). However, when presented with spending opportunities and imagining that costs were of no consequence, respondents identified areas that would bring more enjoyment: big adventures or travel (43%), hobbies (43%), and dining out (36%).

Unlocking the License to Spend

While lifetime savers worry about running out of money, they have an equally powerful concern: running out of time. Retirement plans and guaranteed income create confidence, but those most comfortable spending adopt a mindset that values experiences and making the most of the future. The findings suggest that true retirement confidence comes not only from financial preparation but from giving oneself permission to enjoy the future those savings were meant to support.

• Knowing how long to hold on: Thirty-three percent of all respondents report they don’t know how long they need their money to last. That number jumps to 44% among those with $500K+ in investable assets.

• Planning and guaranteed income: Pre-retirees with a clear retirement plan are 56% more likely to feel comfortable to spend their savings on enjoyment. Savers with a withdrawal strategy are 52% more likely to feel comfortable spending on enjoyment. And those who have or expect to use a pension, annuity, or guaranteed income in retirement are 43% more likely to feel they have the permission to enjoy their savings. Overall, 58% say they would feel more comfortable spending their savings if they knew that their basics are covered, including emergencies, and they have guaranteed income for life.

• Leaning into FOMO (Fear Of Missing Out): While less than a fifth of savers say they would be comfortable spending savings to enjoy retirement, 26% of savers fear their biggest future regret will be missing out on life. That fear rises to 40% among households with $500K+ in assets.

• Reminder that life may be shorter than desired: Overall, 59% of respondents want to live longer than they expect to. One in five respondents reported they would like to live to 100 years old. Forty-five percent want to live to at least 90 years old, but only 30% expect they will reach that age.

• Carpe diem attitude: When asked what they would tell a friend who is also afraid to spend, nearly half of the respondents advise a “you can’t take it with you” mindset. Savers with a “live now” attitude are 25% more likely to feel comfortable spending on enjoyment than those who do not. Savers who feel that they have earned the right to enjoy their savings through discipline and hard work are 47% more likely to feel comfortable spending their savings for pleasure; this signals a key emotional driver among wealthier savers ($500K+ in assets).

• A more positive take on the future: When asked about their outlook in retirement, those already living it expressed a notably more positive perspective than those still preparing for it. The dread among pre-retirees about the future may be overestimated, as retirees are far more likely to describe retirement as “freedom” (71% vs. 53%), more ordinary yet meaningful, and more affordable than imagined. The study revealed that adapting a more positive mindset about the future and uncertainty is also associated with greater comfort in spending.

 

A Significant Need — and Opportunity — for Advice and Access Exists

The research suggests there are several opportunities, strategies, and tools being underutilized by Americans that could ease anxiety and help strengthen both their retirement security and enjoyment. Nearly half (47%) report that knowing basic living expenses are covered for life would lead to income certainty and increased comfort to spend; it is even higher among wealthier respondents (55% among those with $500K+ in investable assets).

• Plans and advice needed: Only 23% of pre-retiree respondents have a clear retirement plan. Just 16% of all respondents have a withdrawal strategy. Even among those with $500K+ in investable assets, only 31% have a clear withdrawal strategy. Furthermore, only 28% of all respondents currently work with a financial advisor or planner.

• Steady stipend vs. single sum: Two-thirds (66%) would choose a guaranteed monthly check for life over a lump sum. Over half (54%) report permission to spend and enjoy as the most common reason for wanting guaranteed income.

• Close the gender gap: Women are still notably more likely than men to associate retirement with financial insecurity (55% vs. 41%). Women are 33% less likely to feel comfortable enjoying their savings than men. Married or partnered women continue to feel they are less knowledgeable about investing than their spouses/partners (28% vs. 39% among men), and they are less likely to lead a relationship with an advisor (16% vs. 36% among men).

• Bridging AI into action: Thirty-nine percent of respondents who are still in the workforce report using AI for retirement guidance, including whether to buy an annuity or a guaranteed income product. However, 88% of them would check the information first from other sources, family, or an advisor before acting on it. Fifty-six percent reported that they would check with an advisor first, showing that while AI might be the “front door” to advice, human advisors remain trusted experts.