If you’ve spent decades saving diligently, you’ve probably spent a lot of energy worrying about not having enough in retirement. There’s a problem on the other end of the spectrum, though, and it doesn’t get nearly as much attention.
I call it “the tomorrow trap.” It’s what happens when you’ve saved well and you still can’t bring yourself to spend it. The European trip keeps getting postponed, the home improvements stay on the list, and the accounts grow larger while the years move faster.
In my latest video, I talk about why this happens and how to build a plan that can help you feel more confident to enjoy what you’ve built. If the words “I just don’t want to touch principal” have ever crossed your mind, give this one a watch.
If you have any questions, the CGN Advisors team is here to help. Reach out today for a free consultation.
Transcript
The Tomorrow Trap in Retirement
What if the biggest financial risk in retirement isn’t running out of money? What if it’s never letting yourself spend what you’ve saved? I’m Jamie Bosse, senior advisor at CGN Advisors, and today I want to talk about something that comes up more often than you’d expect among people who have done everything right. It’s called “the tomorrow trap.” and if you’ve saved a bunch for retirement, this video is for you.
For 30 or 40 years, you trained yourself to save. Every financial decision went through the same filter. Is this responsible? Should I be putting this away instead? And that habit is powerful and a big part of why you have the wealth you have today. But here’s what many don’t expect.
Why Spending in Retirement Can Feel Difficult
That same reflex can work against you once you retire. Think about a retiree with a seven-figure portfolio who still won’t replace a 15-year-old car or book that European trip they’ve been talking about for years. Not because they can’t afford it (they absolutely can), but spending still feels wrong.
And that’s what I call the “saving muscle,” and it doesn’t automatically switch off when you stop working. So why is it so hard to shift out of saving mode? Building wealth follows a simple formula. Earn, save, and keep going.
But spending it down is a completely different skill set, one most never had to develop. Researchers actually have a name for what happens: wealth decumulation anxiety.
What Were You Saving For?
After decades of watching that number climb, the idea of reducing it creates real psychological resistance. So people hold back. They postpone trips, skip home improvements, and sit on accounts they never touch.
The problem is that all those years of sacrifice were supposed to fund a fulfilling life. If you never let yourself use what you built, ask yourself, what were you saving for? And there’s a pattern in how retirees spend that helps answer this question. Studies show that most retirees spend more in their early retirement years when they’re healthy and active, and less in the middle, and then more later due to healthcare expenses.
Creating a Retirement Spending Plan
That’s why waiting forever to enjoy retirement can be costly in ways that have nothing to do with money. The solution isn’t reckless spending, it’s having a plan.
A good retirement plan creates guardrails that help you understand how much you can safely spend while still protecting your future. It helps you avoid both extremes, running out of money and spending so little that you miss out on the retirement you worked hard to create.
You spent decades building your financial future. The goal now is to use it to support the life you want to live.
If you’re not sure whether your current plan gives you that kind of confidence, let’s connect. Call our Manhattan, Kansas, office at 785-340-3434.
We’d love to help you figure out not just whether you have enough, but how to enjoy it.