Retirees, It's Okay to Spend

A recent report by Chris Browning, Tao Guo and Yuanshan Cheng at Texas Tech University showed that most retirees of moderate means, as well as those who are affluent, don't even spend all of their income from Social Security, pensions and investment earnings, much less draw down the principal in their nest egg. Their assets either stay about the same or grow over their lifetime. The wealthier the retiree, the bigger the gap between income and spending, and the more the savings pile up. Underspending in retirement certainly isn't as bad as running out of money. Still, scrimping needlessly cheats you of the enjoyment you deserve after a lifetime of saving.