How to know what you can spend
Self-control is a personal trait that can make someone a great saver, but paradoxically, it can lead them to struggle when it's time to benefit from those savings.
Many studies—including our own research*—have shown that well-off retired investors often don’t spend much of their retirement savings, and their accounts can continue to grow. It's not a terrible problem to have, of course—but it could mean they don’t know how much is "safe" to spend and thus are overly frugal, sacrificing their enjoyment of retirement.
See other behavioral factors that can affect retirement spending
As you plan how to use your retirement money, you want a strategy that accomplishes 2 often-competing goals: 1) having enough money to support your desired lifestyle, and 2) ensuring there's plenty left for the future, including any money you plan to leave to heirs. We've got a withdrawal strategy that can help you with both. But first let's review the traditional approaches.