When it comes to retirement, Americans struggling with 'permission to spend,' says Prudential

Americans are juggling the twin pressures of FOMO and FORO when it comes to their retirements, according to new research from Prudential.

The 2026 Retirement Pulse survey of 3,023 U.S. adults aged 50 and over, found that 86% of people surveyed lack confidence about pulling from their retirement savings and living on them enjoyably. Even among respondents with $500,000 or more in investable assets, 61% still do not feel comfortable spending for enjoyment, the research said.

“People aren't effectively using their wealth in retirement,” said David Blanchett head of retirement research at Prudential, and portfolio manager, at Prudential Global Investment Management, during an event in Manhattan this week. “There's this idea of this permission to spend.”

In particular, Blanchett pointed to the fact that people are balancing the ideas of FOMO and FORO, which is the Fear of Running Out (of money). “I think that we have this tension today that exists among many retirees where they're just too hesitant to enjoy what they've got and do what they want because they don't want to go broke,” he said. “Very few Americans are good at accessing their savings via a defined contribution plan.”

Indeed, most survey respondents said that they felt guilt opening their wallets when it comes to discretionary items. For spending on big trips and adventures, this percentage went up to 61%, and for spending on entertainment, it climbed to 63%. For classic bucket-list purchases, such as a beach house, sports car, and jewelry, the percentage climbs to 86%.

Set against this backdrop, the research also highlighted the importance of financial advisors in helping clients meet their retirement objectives. Less than a quarter (23%) of respondents who are pre-retirees have a clear retirement plan, according to the study, and a mere 16% of all respondents have a withdrawal strategy. For respondents with over $500,000 in investable assets, this percentage only rose to 31%, and, among all respondents, only 28% work with a financial advisor or planner.

Barbara Pietrangelo, a financial planner with Prudential Wealth Advisors described guaranteed income as “huge” in helping clients meet their retirement goals, during this week’s event.

Certainly, this seems to be resonating the survey’s respondents – 66% said that they would choose a guaranteed monthly check for life over a lump sum and 54% said permission to spend and enjoy as the most common reason for wanting guaranteed income.

Read more: Retirees spend twice as much when they have guaranteed income, research finds

Tellingly, pre-retirees who have a clear retirement plan are 56% more likely to feel comfortable spending their savings on enjoyment, according to the study. The research also found that savers with a withdrawal strategy are 52% more likely to feel comfortable spending on enjoyment, and those who have or expect to use a pension, annuity, or guaranteed income in retirement are 43% more likely to feel they have the permission to enjoy their savings.

“In the guaranteed income, there's lots of flavors and lots of ways of doing it - that's the nice thing about what we have at Prudential,” said Pietrangelo. “We've got lots of ways of doing it, and that's where I think working with an advisor and having a long-term plan is so important.”