Prudential Survey Finds 54% of Retirees Preserve Savings for Heirs Over Spending
Updated
Updated · Scripps News · Oct 13
Prudential Survey Finds 54% of Retirees Preserve Savings for Heirs Over Spending
3 articles · Updated · Scripps News · Oct 13
Summary
54% of retirees say they would rather leave money to heirs than risk running out of cash in retirement, according to a new Prudential survey.
61% of retirees with at least $500,000 invested still do not feel comfortable spending money for enjoyment, underscoring how fear persists even with sizable savings.
The anxiety reflects the shift from pensions to self-managed 401(k)s and IRAs, leaving retirees to judge withdrawals amid market swings, inflation, healthcare costs and longer lifespans.
Jean Chatzky said retirees should focus less on account balances and use roughly a quarter to a third of savings to build dependable monthly income through tools such as CDs, bonds, dividend stocks or annuities.
Experts warn that leaving retirement money untouched can backfire, because a withdrawal plan is needed to balance taxes, investment growth and lifestyle needs over decades.