Only 28% of Pre-retirees and Retirees are Comfortable Drawing Down Savings in Retirement, But Having a Plan for Decumulation Boosts Confidence
New Corebridge Financial research highlights how emotions around retirement spending influence lifestyle choices and reinforces the need for decumulation planning
- 61% of respondents see retirement as a time to enjoy themselves, yet 50% feel uncertain about spending their retirement savings
- Fewer than 1 in 3 pre-retirees 55 and older have a plan for withdrawing money in retirement
- Those highly confident about managing retirement spending are five times more likely to feel empowered and three times more likely to feel rewarded drawing down savings in retirement
New research from Corebridge Financial reveals a retirement paradox: Even though fulfilling retirement dreams will likely require spending, many struggle with the thought of drawing down retirement savings to fund them. However, those with a decumulation plan have a much more positive outlook about retirement spending.
Only 28% of respondents are comfortable with the idea of their retirement savings declining to cover living expenses in retirement, and 70% say it is very important their nest egg does not shrink in retirement. Half associate retirement spending with "uncertainty" and 44% with "anxiety."
A planning gap between the accumulation and decumulation phases of retirement may help explain this unease:
- Just 14% of retirees say they have a detailed strategy to manage their Required Minimum Distributions.
- Only 29% of pre-retirees age 55 or older have a plan for retirement account withdrawals.
"Retirement is meant to be enjoyed, but many find it difficult to give themselves permission to spend the savings they've worked so hard to build," said Terri Fiedler, President of Retirement Services at Corebridge Financial. "Concerns about running out of money often shape spending habits that limit fulfillment later in life. Having a thoughtful decumulation strategy can help individuals manage complex financial decisions and feel more secure about the future."
Fear of outliving savings may drive spending anxiety
When asked to choose, far more say they'd regret running out of money while still alive (56%) than dying with money left over (6%). Feeling financially secure is the top retirement goal for pre-retirees (85%) and retirees (82%).
This protectionist mindset may be leading to cautious spending behaviors: 38% of retirees say they have spent less than they wanted in order to maintain the size of their nest egg.
Surprisingly, retirees' hesitation to spend is rarely driven by a desire to leave an inheritance: 83% do not have a specific inheritance goal and instead plan to leave behind whatever money is left over.
Planning and confidence are key to spending satisfaction
While many are uncomfortable drawing down savings in retirement, those who plan are more confident. Nearly 3 in 5 pre-retirees (57%) aged 55 or older who have a decumulation plan are highly confident they can manage spending throughout retirement, compared to 26% without a plan.
Similarly, 55% of retirees with a spending plan are highly confident, compared to only 29% without a plan.
Those who are highly confident they can manage their retirement spending are five times more likely to say spending in retirement is "empowering" (16% vs. 3%) and three times more likely to find it "rewarding" (20% vs. 6%) compared to those who lack confidence.
With 60% of respondents expecting to spend at least 20 years in retirement, and 45% expecting to live to age 90 or older, having the flexibility to confidently spend can enrich a long retirement. More than 6 in 10 associate retirement with "freedom" and "enjoyment." Separate Corebridge research, "Living and Funding Longer Lives," found that nearly 2 in 3 people see having more time to explore and experience new things as a benefit of living a very long life1—suggesting many hope to enjoy a retirement full of activities, which can often come with a price tag.
The most common approach to managing investments and spending in retirement cited by pre-retirees and retirees is using a consistent withdrawal percentage (e.g., the 4% rule).
"With fewer pensions, Social Security uncertainty and people living longer, it's time to rethink how retirees transition from saving to spending," continued Fiedler. "Previous strategies and rules of thumb may not cut it anymore. The new paradigm calls for a greater focus on guaranteed lifetime income."
Enriching retirement with guaranteed income
Nearly 3 in 4 people believe having guaranteed lifetime income beyond Social Security, offered through solutions like annuities, would positively impact their ability to spend on things that make them happy.1
In fact, more respondents (47%) would prefer $60,000 per year guaranteed for life instead of a $1 million lump sum at age 65 (41%). And retirees say guaranteed lifetime income would enable them to spend more on personal fulfillment, including travel (69%), home improvements (29%) and dining out (25%).
Interest in guaranteed lifetime income from an annuity is strong with younger Gen Xers, who are most worried about their savings not lasting for life. Half of respondents ages 45–55 who are familiar with annuities said an annuity providing guaranteed lifetime income in retirement would be highly valuable.
This research is part of a wider campaign in collaboration with best-selling author and founder of HerMoney Jean Chatzky, to help people maximize their retirement security and enjoyment.
"For decades, retirement conversations have been focused on a singular financial challenge: Saving enough. It's a message Gen X, the first without pensions, took to heart and later generations followed," said Chatzky. "But what's become evident as these folks start retiring is that without a plan of how to actually use that money, they face a retirement of uncertainty. Questions about how much you can spend, how well you can live, how much you can enjoy yourself and how long that money will last inevitably arise. Turning some of those hard-earned savings into a stream of income that lasts as long as you do can be a route to a more grounded, happier retirement all around."
Visit our landing page for the full research findings, Corebridge's new Decumulation Action Planner written by Jean Chatzky, and videos of Jean sharing real people's stories on how they're managing the shift from working and saving to spending and living in retirement.
About The Corebridge Financial Decumulation Planning Gap Study
The Decumulation Planning Gap Study was conducted for Corebridge Financial by Greenwald Research. Information was gathered through an online survey of 2,210 adults aged 45-79 who have $100,000 or more in investable assets. Surveys were completed between October 14, 2025, and November 3, 2025.
1Corebridge Financial Living and Funding Longer Lives, 2025
Annuities are long-term insurance products designed for retirement. Early withdrawals may be subject to withdrawal charges. Partial withdrawals reduce the contract value and may reduce certain benefits under the contract, such as the death benefit and the amount available upon full surrender. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. Guaranteed lifetime withdrawal benefits and guaranteed living benefit riders may be optional or standard. Additional fees, age restrictions, withdrawal parameters, and other limitations apply.
All products and services are written or provided by subsidiaries of Corebridge Financial, Inc.
About Corebridge Financial
Corebridge Financial, Inc. (NYSE:CRBG) makes it possible for more people to take action in their financial lives. With more than $380 billion in assets under management and administration as of March 31, 2026, Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States. We proudly partner with financial professionals and institutions to help individuals plan, save for and achieve secure financial futures. For more information, visit corebridgefinancial.com and follow us on LinkedIn.
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