Workers are conditioned from the start of their careers to prioritize building a nest egg so they can live comfortably in their golden years.\u00a0 <\/p>\n
However, for many people, their golden years are already underway.\u00a0 <\/p>\n
The “die with zero” movement challenges everything we’ve been taught about saving for retirement. It encourages spending your wealth throughout your life on hobbies, travel, new experiences, and milestones \u2014 rather than saving as much as possible to live off of in your later years.\u00a0 <\/p>\n
But does this strategy make sense, or does it set you up for financial insecurity down the road? Here’s a closer look at the die with zero movement and how it works. <\/p>\n
Read more: What is the average retirement savings by age?<\/a> <\/p>\n<\/p>\n What is the ‘die with zero’ philosophy?\u00a0 <\/p>\n The die with zero (DWZ) philosophy or DWZ movement was first made popular by the book Die With Zero<\/a> by Bill Perkins, a hedge fund manager and entrepreneur. <\/p>\n The central idea is that many people oversave out of fear and end up reaching old age with far more money than they can realistically enjoy. Perkins says that rather than building the largest possible nest egg for retirement, you should spend money on experiences \u2014 like travel, hobbies, family time, and learning new skills \u2014 treating them as investments that lead to more happiness and fulfillment throughout your lifetime.\u00a0 <\/p>\n “The die with zero philosophy, at the surface level, means you should try to spend or give away all your money during your lifetime and die with zero in your bank\/investment accounts,” said Derrick Schuler, CFP and wealth planner at Schuler Wealth Planning.\u00a0 <\/p>\n After all, some activities are best enjoyed while you’re younger and healthier. For example, a once-in-a-lifetime adventure like hiking Mount Kilimanjaro or taking a monthlong backpacking trip through Europe may not be realistic when you’re 75, so delaying big expenses until retirement can mean missing opportunities. <\/p>\n Further, Perkins argues that inheritances are often more valuable when given earlier in life. For instance, helping an adult child buy their first home or pay for graduate school in their 30s may have a much greater impact than leaving them the same money decades later after you pass. <\/p>\n However, the die with zero philosophy doesn’t encourage reckless spending. Rather, it’s about saving enough money to maintain financial security without sacrificing decades of enjoyment just to accumulate wealth you may never use. <\/p>\n Read more: What are your financial rights following the death of a loved one?<\/a> <\/p>\n Pros and cons of DWZ <\/p>\n While traditional retirement savings strategies<\/a> prioritize making sacrifices now to obtain greater financial security later, the DWZ philosophy emphasizes that money should be used throughout your life to create meaningful experiences and invest in the people and priorities that matter most.\u00a0 <\/p>\n The reality is that no retirement plan \u2014 no matter how conservative \u2014 can predict exactly how much money you’ll need<\/a> or what your expenses will look like decades from now. The DWZ philosophy appeals to people who are comfortable accepting some uncertainty in exchange for enjoying more of their wealth while they’re still young and healthy enough to do so. <\/p>\n Many workers are conditioned to save aggressively for retirement out of fear that their savings will quickly run out once they stop working. But in practice, that isn’t always what happens.\u00a0 <\/p>\n A 2025 study<\/a> by TIAA, for example, found that many retirees retain substantial financial wealth in later life. The median retiree still held about 68% of the wealth they had at age 65 by age 72, while roughly 40% of retirees increased their wealth over that period.\u00a0 <\/p>\n Why? One big reason is that spending often declines with age. As retirees get older, they may travel less, participate in fewer expensive activities, and naturally spend less overall. In fact, data from the Bureau of Labor Statistics’ 2023 Consumer Expenditure Survey<\/a> shows that average annual spending tends to peak between ages 45 and 54 before beginning to decline after age 65. <\/p>\n However, it’s impossible to predict the future. And, for some retirees, healthcare costs, long-term care needs, inflation, or changes in family circumstances can all drive expenses higher later in retirement.\u00a0 <\/p>\n That’s where the risks of the DWZ philosophy become more apparent. Spending too aggressively early in life could leave you with fewer resources to handle unexpected costs in your later years. <\/p>\n “Retirement matters, but so does spending on experiences, family, and milestones along the way,” said Mindy Yu, CIMA and senior director of investing at Betterment at Work. “That’s the appeal, but the risk is in how literally people take it. If you optimize purely for spending today, you’re exposed to everything you can’t predict, like a multi-decade retirement, market downturns, rising healthcare costs, or a family member who needs support.” <\/p>\n