How to Overcome the Mental Block of Spending in Retirement
For decades, the message has been clear: save, invest, and prepare for retirement. But what happens when you’ve done all that only to find you can’t bring yourself to spend the money you worked so hard to build?
This is a common challenge among retirees. They have the financial capacity to enjoy their retirement but find themselves paralyzed when it comes time to actually spend. This article explores the psychological barriers to spending in retirement and offers a five-step framework to help shift your mindset and make the most of your golden years.
Why Spending in Retirement Feels So Difficult
Even after reaching financial independence, many retirees find themselves reluctant to spend. One financial planner shared the story of a client who hesitated to buy a $5 bag of M&Ms—despite having more than enough money to afford it.
This hesitation often stems from deeply ingrained habits developed during earlier life stages. For those who lived frugally, survived financial hardship, or were taught to value saving above all else, shifting into a “spending mode” in retirement feels counterintuitive even dangerous.
What begins as financial discipline can turn into unnecessary deprivation if left unexamined.
A 5-Step Framework to Overcome the Spending Block
Here’s a practical process to help you shift from scarcity to intentional spending:
1. Acknowledge Your Feelings
The first step is simply recognizing that the discomfort around spending is real. Understand that your reluctance often stems from past financial experiences many of which are no longer relevant to your current reality.
2. Evaluate the Usefulness of Old Habits
Ask yourself: Is this saving behavior helping me now, or is it preventing me from living fully? Holding on to an outdated mindset can limit your happiness and freedom in retirement.
3. Identify What Truly Matters to You
Pinpoint the values that matter most—health, family, travel, education, or charity. Aligning your spending with these personal values makes it easier to use your money meaningfully.
4. Create Systems That Make Spending Easier
Instead of wrestling with every financial decision, build systems that remove friction. For example, open a separate “fun” or “travel” account at the beginning of the year and fund it in advance. When the time comes to book a trip or enjoy an experience, the money feels “already spent” freeing you from decision fatigue.
5. Surround Yourself With Encouragement
Spouses, friends, or social groups can gently challenge your instincts to save every penny. One guest, James, credited his wife Ashlynn for helping him enjoy dinners out and travel, which he would’ve otherwise skipped. These shared experiences created lasting joy and stronger relationships.
One Tactical Tip: Pre-Allocate Your Funds
Ben, a podcast guest, offered a game-changing strategy: withdraw money annually for your lifestyle spending categories and put it into a separate, easy-access account. This reduces the emotional resistance of withdrawing from your portfolio multiple times a year.
Whether it’s a vacation, home project, or family gift, earmarking funds ahead of time allows you to spend with clarity and purpose without anxiety.
Final Thoughts: It’s Time to Enjoy What You’ve Built
Retirement should be about freedom not financial fear.
If you’ve spent decades saving and investing, don’t let psychological barriers keep you from enjoying the life you’ve prepared for. The shift from accumulation to decumulation isn’t just financial—it’s emotional and mental.
By acknowledging your feelings, aligning spending with your values, and building practical systems, you can move past the guilt and start embracing the life you’ve earned.
You didn’t save all this money to die with it you saved it to live with it.
You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.
Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.
