38% of Retirees Avoid Spending Savings, Only 14% Have RMD Plans
CRBG•Fewer than one in three retirees feel comfortable drawing down savings, with 38% admitting they’ve held back spending to protect their nest eggs and 83% planning to leave leftovers to heirs. Only 14% of retirees have a detailed strategy for Required Minimum Distributions, signaling a gap in decumulation planning.
1. Key Survey Findings
Fewer than one in three retirees are comfortable drawing down their savings, with 38% admitting they’ve restricted spending to protect their nest eggs. Additionally, 83% plan to leave any leftovers to heirs, yet only 14% have crafted a detailed Required Minimum Distribution strategy and just 30% of pre-retirees have a withdrawal plan.
2. Psychological Barriers to Decumulation
Retirees often define wealth by accumulated assets and struggle to shift from a paycheck mindset to spending their savings. This disconnect creates reluctance to decumulate, even when distribution rules mandate withdrawals.
3. Business Implications for Corebridge
The widespread lack of decumulation planning highlights an opportunity for Corebridge to expand advisory services and retirement income solutions. Enhancing tools for RMD management and education could drive asset management growth and client engagement.
