Are You Afraid of Spending in Retirement?

Jordan Defazio
Oct 17
2 min read

“If I just had more money, life would be easier.”

Sound familiar?

Most people feel this way, whether they have $500,000 or $5 million.

The truth is, fear about money isn’t always about numbers. It’s often about control.

Why a Financial Plan Helps Calm Financial Fear

If the thought of running out of money keeps you up at night, the first question to ask is: Do you have a financial plan?

A solid plan connects your goals such as travel, family, and freedom to the savings you’ve built.

It helps you see what you can safely spend and how long your money will last.

A good plan also includes a withdrawal strategy.

It outlines how to draw income from your investments to cover your lifestyle without

depleting your nest egg too soon.

The Psychology of Spending

Andrea McTague, Founder of ShiftGrit Psychology and Counselling, says this is common.

After decades of earning and saving, many retirees develop what she calls a scarcity complex:

an instinct to protect, not use, their wealth.

That is because spending activates a different part of the brain than planning.

Your financial plan appeals to logic.

Your fear of running out of money triggers the brain’s threat system, the same one responsible for fight, flight, or freeze responses.

And when it comes to money, most people freeze.

How to Rebuild a Healthy Relationship with Spending

McTague suggests to identify what triggers your fear, such as a past loss or growing up with financial insecurity.

Then, desensitize yourself slowly.

Start small and buy something meaningful that feels like a “splurge.”
Take a short trip instead of a long one.
Build spending confidence step by step.

As comfort grows, so does the ability to enjoy what you have earned.

Why It Matters

Retirement is not just about preserving wealth.

It is about living it.

The real question is not what to do with your money, but what to do with your time, freedom, and purpose.

Do not let anxiety steal your golden years.

If you are ready to turn savings into confidence, join one of our upcoming retirement seminars to learn how planning can help you spend with purpose.

To learn more about ShiftGrit, you can visit their website by clicking here.

David Popowich and Faisal Karmali are Investment Advisors with CIBC Wood Gundy in Calgary. The views of David Popowich and Faisal Karmali do not necessarily reflect those of CIBC World Markets Inc.

This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change.

CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc. Insurance services are available through CIBC Wood Gundy Financial Services Inc. In Quebec, insurance services are available through CIBC Wood Gundy Financial Services (Quebec) Inc. The CIBC logo and “CIBC Private Wealth” are trademarks of CIBC, used under license. “Wood Gundy” is a registered trademark of CIBC World Markets Inc.