58% of Near-Retirees Fear Running Out of Savings as Advisers Urge Spending Plan
Updated
Updated · AARP · Nov 5
58% of Near-Retirees Fear Running Out of Savings as Advisers Urge Spending Plan
3 articles · Updated · AARP · Nov 5
Summary
58% of Americans ages 50 to 75 within five years of retirement fear exhausting their defined-contribution savings, while 42% worry they will overspend early, according to 2026 surveys cited by AARP.
AARP says the first step is mapping expected retirement income against expenses by reviewing the past 12 months of spending, including irregular annual fees, and reducing high-interest debt before leaving work.
10% to 15% extra spending may be needed in the first three to five years of retirement, when travel and home renovations often lift costs before they later settle into a lower routine.
Guaranteed income sources such as Social Security, pensions and, for some, annuities can cover basic expenses and reduce anxiety about drawdowns; fee-only hourly advisers can help assess whether annuities fit.
A one-year trial run on a retirement budget can test readiness and show whether to delay retirement, work longer or shift into phased retirement.