With increasing longevity and uncertainty about healthcare costs, many retirees find themselves afraid to spend their money during retirement, at a time when they are healthy and can enjoy their hard-earned savings. The same challenges that complicate saving for retirement—such as estimating lifespan, predicting portfolio returns, factoring inflation and accounting for unexpected expenses—also make retirement spending decisions complex.

Fearing they might outlive their savings, some retirees underspend, missing opportunities to enhance their quality of life. In this article, we’ll explore key blind spots that may affect retirement spending and demonstrate how mental accounting can help you anticipate and manage these challenges effectively.

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