I'm 61 And Finally Ready To Retire With $2.8 Million Saved, But Why Does The Idea Of Spending It Terrify Me?

Core Insights - The fear of outliving savings is a prevalent concern among older Americans, with over half believing they will run out of money during retirement [1][2] - Psychological factors, particularly loss aversion, contribute to this anxiety, as individuals find the prospect of depleting their savings emotionally distressing [2] - Despite having a substantial nest egg of $2.8 million, concerns remain when compared to national averages, where the median retirement balance for those aged 55 to 64 is approximately $185,000 [3] Financial Guidelines - The "4% rule" is a common guideline for retirees, suggesting a safe withdrawal rate of about 4% annually, which would allow someone with $2.8 million to withdraw roughly $112,000 each year [4] - If investments yield a conservative 5% annually, the nest egg could potentially last indefinitely while accommodating inflation [4]