Prudential survey highlights retirement spending caution among older Americans

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Prudential survey on retirement caution

Highlights

Prudential Financial's 2026 Retirement Pulse survey shows only 14% of Americans aged 50+ feel comfortable spending freely in retirement, reflecting widespread Fear of Running Out (FORO).
Income uncertainty drives restraint, as nearly half of respondents express concern about Social Security's future and over two in five cite inflation or rising costs.
About two-thirds of respondents prefer guaranteed monthly income products like annuities over lump sums, with anxiety strongest among pre-retirees and only 25% having a clear retirement plan.

Survey findings point to fear of outliving savings

As reported by Business Insider, citing Prudential Financial's 2026 Retirement Pulse survey, only 14% of respondents say they feel comfortable spending each month in retirement on enjoyment such as hobbies, travel and dining out. The online survey, conducted between July and August among more than 3,000 U.S. adults aged 50 and older, indicates that concern about depleting savings remains widespread.

Prudential describes the pattern as FORO, or Fear of Running Out. More than half of respondents say they would rather leave behind too much money than risk exhausting their assets, or would prefer to preserve what they have without reducing it, and that share rises to 70% among those with more than $500,000 in investable assets.

David Blanchette, head of retirement research for Prudential Financial, says the traditional idea of retirement as a period of steadily spending down a large stockpile does not reflect the experience of many households. The survey also finds that 42% of respondents say they have been unable to strike a balance between enjoying life now and postponing spending until later.

Income uncertainty shapes retirement behavior

Concerns about future income are reinforcing that restraint. Nearly half of respondents say they hesitate to spend because they are unsure whether Social Security will remain available down the line, while more than two in five cite inflation and the rising cost of living, and about a third point to long-term care costs.

The survey suggests uncertainty persists even among higher-asset households. While 39% of people with more than $500,000 in investable assets say they feel comfortable spending for enjoyment, 44% of that group still say they do not know how long their money will need to last.

Almost half of respondents say they know they can cover essential living expenses for life, offering some reassurance, but anxiety is stronger among pre-retirees, especially as fewer than a quarter say they have a clear retirement plan. Prudential's advisers say the results support broader discussion of guaranteed monthly income products such as annuities, with about two-thirds of respondents preferring a guaranteed monthly check over a lump sum.

Our earlier article on elevated U.S. Treasury yields explained how high coupons can cushion bond investors against additional price declines, even as markets reassess the Federal Reserve’s rate path. We also noted that persistently higher yields can challenge Treasuries’ “money-like” role and influence portfolio positioning, with many investors favoring shorter maturities to limit duration risk.

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