Fear of Running Out of Money Steals Retirement Joy for Many
A common problem for many retirees is worrying that they haven't saved and invested enough. This fear of scarcity can diminish quality of life, but there are steps to take to find balance.
The author's husband recently retired, but she fears struggling with anxiety over their savings and investments. A recent Allianz Life study found that 67% of Americans worry more about running out of money than death.
Hypervigilance can emerge from real-life difficulties such as inflation, market volatility, and uncertainty around Social Security. To address this issue, the author suggests building a written 'safe spending' plan using a guideline like the 4% rule, which supports a $20,000 annual withdrawal for every $500,000 portfolio.
Automating monthly withdrawals from accounts can also provide psychological permission to spend, while using a bucket strategy and creating a regular stream of income through dividend-paying stocks or ETFs, such as Johnson & Johnson or Procter & Gamble, can help alleviate financial stress.