{"id":354083,"date":"2025-11-04T03:32:16","date_gmt":"2025-11-04T03:32:16","guid":{"rendered":"https:\/\/www.europesays.com\/us\/354083\/"},"modified":"2025-11-04T03:32:16","modified_gmt":"2025-11-04T03:32:16","slug":"retirees-are-growing-1m-to-5m-at-what-cost","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/354083\/","title":{"rendered":"Retirees Are Growing $1M to $5M\u2014At What Cost?"},"content":{"rendered":"

\"A <\/p>\n

\n eggeeggjiew \/ Getty Images\/iStockphoto <\/p>\n

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Many retirees dream of reaching $1 million in savings, believing it will finally give them the freedom to relax and enjoy life.\u00a0<\/p>\n

Yet, according to certified financial planner Kevin Lum<\/a>, many end up with sometimes $5 million or more by the end of retirement<\/a>. While that might sound great, it usually isn\u2019t the result of brilliant investing. In a recent video<\/a>, Lum said it happens because many retirees simply don\u2019t spend the money they\u2019ve saved.\u00a0<\/p>\n

Here\u2019s how retirees turn $1 million in savings into $5 million and how that might be holding them back<\/a>.\u00a0<\/p>\n<\/p>\n

Why Retirees Can\u2019t Stop Saving<\/p>\n

Lum calls this the \u201cconsumption gap.\u201d It\u2019s the space between what retirees could spend comfortably<\/a> and what they actually do.\u00a0<\/p>\n

Even in tough market years, many see their nest eggs hold steady or grow. Lum has seen it firsthand: One client, with pensions and Social Security covering all expenses, resisted taking a dream trip despite having $4 million saved. His reminder was simple: \u201cYou are retired.\u201d<\/p>\n

Why $1 Million Doesn\u2019t Feel Like Enough<\/p>\n

Lum said two forces drive this underspending.\u00a0<\/p>\n

The first is a lifetime of saving habits. After decades of delayed gratification, spending freely can feel almost irresponsible.\u00a0<\/p>\n

The second is uncertainty about the future. Retirees worry about living longer than expected<\/a>, the rising costs of inflation or the possibility of market downturns, even when the math shows they\u2019re financially secure.\u00a0<\/p>\n

He said another couple with $7 million at age 75, asking whether they could \u201cafford\u201d to buy a new front door. Their fear of overspending outweighed the reality that their portfolio would more than cover it.<\/p>\n

The Cost of Playing It Safe<\/p>\n

While leaving a large inheritance can be meaningful, Lum said that overly conservative spending often comes at a hidden cost.\u00a0<\/p>\n

Retirees who cling to their savings may miss out on experiences like travel, hobbies or family celebrations. Some postpone spending until later years, only to discover that declining health limits what their money can actually buy.\u00a0<\/p>\n<\/p>\n

Lum said that while heirs may eventually receive a larger financial gift, they often lose the chance to share in memories and experiences that could have been created along the way. For many retirees, he said, the fear of running out overshadows the reality that their money will likely outlast them.<\/p>\n

Spending Without Fear\u00a0<\/p>\n

Lum said retirees need financial planning and permission to enjoy what they\u2019ve saved.\u00a0<\/p>\n

He said one of the best ways to build that confidence is to create a realistic spending plan that takes inflation and long-term needs into account. Retirees can also set aside money specifically for enjoyment, whether in a \u201cfun fund\u201d or a travel account, so it feels normal to use savings on meaningful experiences.\u00a0<\/p>\n

Lum said it also helps to plan explicitly for healthcare costs, since medical worries are one of the biggest reasons people hold back from spending. Above all, he said, working with a trusted advisor can provide the reassurance many retirees need to feel comfortable living<\/a> more fully in retirement.<\/p>\n

Bottom Line<\/p>\n

Lum said the biggest risk many retirees face isn\u2019t running out of money; it\u2019s never enjoying it.\u00a0<\/p>\n

Years of saving and fear of the unknown can leave people clinging to their nest eggs while missing the experiences those savings were meant to support. He encouraged retirees to ask a simple question: \u201cIf not now, when?\u201d<\/p>\n

Retirement funds aren\u2019t just for preserving wealth. They\u2019re there to create joy, memories and meaning while there\u2019s still time.<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"eggeeggjiew \/ Getty Images\/iStockphoto Commitment to Our Readers GOBankingRates’ editorial team is committed to bringing you unbiased reviews…\n","protected":false},"author":3,"featured_media":354084,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[64,8726,255,615,700,67,132,68],"class_list":{"0":"post-354083","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-gobankingrates","10":"tag-personal-finance","11":"tag-planning","12":"tag-retirement","13":"tag-united-states","14":"tag-unitedstates","15":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115489328755611590","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/354083","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=354083"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/354083\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/354084"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=354083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=354083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=354083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}