Key Points
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If you can’t bear to part with even a portion of your savings, it can prevent you from enjoying life.
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A portfolio that continues to grow throughout your retirement means leaving money on the table.
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There’s a fine balance between overspending and underspending, and it’s possible to find it.
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Once you’re retired, it makes sense to protect your assets. After all, you’re unsure how long you’ll live or what will happen throughout those years. While it’s possible to overspend and run out of money, it’s equally possible to spend too little and rob yourself of an enjoyable retirement.
But how do you know you’re underspending? After all, you spent decades carefully planning and saving for your golden years, and now that they’re here, spending somehow feels wrong. Here are four signs that you may just be spending too little.
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1. Your portfolio isn’t shrinking
Between January 2021 and December 2025, the S&P 500 produced an average return of 14.4%. Between January 2016 and December 2025, it was even higher — 14.8%. That’s right in the middle of the Dow Jones Industrial Average and the Nasdaq Composite for the same period.
If you’ve been retired for a while, it probably felt great to watch your portfolio grow as the market soared. However, you may temper your excitement by remembering that bear markets and other market downturns are part of the economic cycle, too. And once you remind yourself that the market is bound to drop at some point, you might decide not to take any withdrawals other than those you must take due to required minimum distributions (RMDs).
If your balanced portfolio isn’t shrinking, you’re essentially continuing to build an account that you’ll probably never spend.
2. You keep postponing meaningful experiences
If you find yourself skipping trips, pushing off home projects, or deciding against a hobby that’s always interested you, even though you can afford to do those things, there may be an issue.
Ask yourself how often you say “maybe later” to experiences you can clearly afford. If it’s a fairly common experience, that’s a behavioral red flag.
3. You’re spending far less than you could
If you systematically spend less than your plan safely allows, an advisor is likely to interpret your action as a confidence problem rather than a preparedness problem. If you harnessed enough discipline to save and invest for years for retirement, but then — month after month — refuse to spend your savings, it’s likely fear rather than math driving your choices.
4. You feel uncomfortable every time you spend from your portfolio
Many underspenders check their accounts frequently, yet they’re too nervous to use the money, especially when they’re considering spending it on discretionary items. If each withdrawal feels like a mistake, even as your long-term projections remain strong, that discomfort you feel is a warning sign you may need to adjust your approach.
Ultimately, ask yourself how many experiences you’re willing to leave on the table, only to watch your portfolio stay the same or grow until the day you die. This is not a suggestion to overspend, but a gentle nudge that it may be time to meet with a financial advisor to help you determine a withdrawal rate you’re comfortable with.
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