A Prudential survey reveals a surprising retirement paradox: more than half of retirees — 54% — would rather leave money to heirs than risk spending it all. Even those with substantial savings feel the pinch; 61% of retirees with at least $500,000 invested say they are uncomfortable spending on enjoyment.
Financial author and AARP columnist Jean Chatzky says the shift away from pensions toward 401(k)s and IRAs has left many retirees struggling to convert savings into income. In her book The Forever Paycheck, she recommends using roughly a quarter to a third of retirement savings to build a reliable monthly income stream through bonds, dividends, or annuities.
