Overspending in retirement is a huge issue, in large part because people don’t know how much they have saved and they take too much out of their savings when they do retire.
A recent report by Securities America found that 43 percent of Americans have less than $10,000 saved for retirement. Eighty percent of those surveyed said they expect their standard of living to rise in retirement, but only 49 percent of Americans said they were somewhat or very confident they had enough money to live comfortably in retirement.
Zach Parker, first vice president of income distribution and product strategy at Securities America, said that overspending in retirement is a very large issue because there are a lot of individuals who had a hard time controlling their spending when they still had money coming in.
“In our society it is a big issue from an emotional perspective. People have gotten into that stance where they don’t want to wait, no delayed benefit, I have to get it now and I will figure it out later mentality. That will come back to bite people down the road if conversations don’t take place,” he said.