Meet the rich retired boomers who are now ultra-frugal because they are scared of going broke—even after saving for decades

Core Insights - The study by Prudential Financial reveals that even affluent retirees are struggling with the cost of living, living below their means despite having significant savings [1][4] - The average withdrawal rate for married 65-year-olds with at least $100,000 in financial assets is only 2.1% annually, which is nearly half the traditional spending rate for retirees [2] - The trend of retirees saving more and spending less is termed the "retirement consumption puzzle," indicating a disconnect between wealth accumulation and retirement spending [5] Financial Preparedness - Federal Reserve data indicates that fewer than half of baby boomers have saved adequately for retirement, with 43% of individuals aged 55 to 64 having no retirement savings at all in 2022 [6] - In 2022, 30% of people over 65 were economically insecure, earning less than $27,180, prompting many to return to work to support their retirement [6] Workforce Participation - The phenomenon of "unretiring" is gaining traction globally, with nearly 20% of baby boomers and late Gen Xers in the U.K. rejoining the workforce or planning to do so [7] - In the U.S., the number of individuals working past the age of 65 has quadrupled since the 1980s, reflecting changing retirement dynamics [7]