Core Insights - Many retirees are underspending compared to the commonly suggested withdrawal rates of 3%-4%, which reflects their frugality and identity as good savers [1][2] - Underspending often results in significant residual balances at the end of life, as evidenced by retirement income research [2][3] - Retirees withdrawing 3.9% initially from a $1 million portfolio can expect a median ending balance of approximately $2 million after 30 years, especially with equity-heavy portfolios [3] Group 1 - Leaving a large residual balance can benefit heirs, charities, or loved ones, providing peace of mind for retirees concerned about long-term care expenses [4] - Smaller gifts given during the retiree's lifetime may be more beneficial than leaving assets after death, as they can improve the financial security of heirs [5][6] - The average inheritance of $69,000 is often insufficient for retirement needs, while early gifts can significantly aid younger family members [6] Group 2 - Experiencing the impact of financial support during one's lifetime is often more meaningful than receiving an inheritance later [7]