The Easy Way For A Retiree To Avoid Spending Guilt, According To A Financial Planner

So, you've worked hard, saved for retirement, and now it's time to sit back and enjoy the fruits of your labor, right? But what if you, your partner, or both feel guilty about spending the money you worked so long to accumulate? If this sounds like you, you're not alone. Many retirees find it hard to part with their retirement savings, even though that was the whole point of putting money away for all those years. Luckily, there's a relatively easy way for a retiree to avoid spending guilt: shifting their mindset.

With that said, it can sometimes be easier said than done to change your perspective on retirement savings. President of Belmont Capital Advisors, JoePat Roop, told Kiplinger, "Once savings start to feel like the children's money or the grandchildren's inheritance, spending can feel irresponsible, even when the entire purpose of saving was to support retirement." He went on to explain, "That shift in thinking can quietly turn a very successful retirement into a restrictive one." However, Roop argues it doesn't need to be this way.

One particular way to help counteract this effect is to work with a financial planner. These experts can help provide you with clearer guidance for a guilt-free path forward, while also ensuring you avoid any retirees money mistakes. In particular, a financial expert can conduct spending scenarios to help you allocate your money — and remove any guilt from enjoying your savings. Just make sure you ask your financial planner a few key questions before you hire them.

Retirees may have spending guilt that stems from a range of different factors. Parents who have a child they know is struggling financially might have a hard time spending their money in good conscience. Or, after a lifetime of focusing on saving, it can be challenging to then see your accounts start to dwindle once you start spending. Without the security that comes from having a regular paycheck to replace spent savings, you might even get anxious about whether the amount you've put away will be enough to last long term. Of course, living off investment interest is likely easier than you think.

Regardless, insecurity about future expenses is a big reason for spending guilt among retirees. In particular, not knowing how your health will fare as you age can make it especially challenging to estimate potential health care costs, leaving retirees wondering if they might become a burden to their family. Vicki Reynal, a psychotherapist who focuses on the relationship people have with money, told the Financial Times that, "Spending threatens a sense of security and evokes almost primal fears." However, she also said that many retirees overestimate their lifespan, which can add to the sense of guilt and fear they have when spending their savings.

Taking the right steps with your finances can ensure you avoid spending guilt when the time comes to dip into your savings. A solid financial plan can help you separate your money so you can spend where it matters most to you. One strategy is to set money aside that you want to leave your beneficiaries in order to give you a better perspective on what you can freely spend — without guilt. Once that money is off the table, you can more easily allocate what's left towards living your best life in retirement. Reshaping your mindset should include setting reasonable spending guidelines that allow you the freedom to do what you love, such as travel or spending time on your hobbies.

Also, discussing your finances with your financial advisor, and your family, can also help. Any guilt you might have about responsible spending likely won't be shared by others, meaning that while you might feeling guilty about leaving behind a legacy for your children, they might instead want you to live your retirement to its fullest. Sometimes, getting permission to spend from an advisor or loved one can be all it takes to remove guilt from your spending. Ultimately, while running out of money is a troubling thought, missing out on life experiences can lead to big regrets in the end.