How to Retire Without Running Out of Money

For many people approaching retirement, the biggest fear isn’t what to do with their time. It's whether they’ll have enough money to enjoy that time.

That fear is real.

Not because people haven’t saved anything — most have done their best to build a nest egg. Not because retirement planning is rocket science — it isn’t. The real reason is that retirement brings a fundamental shift: You go from saving money to spending it. From receiving a paycheck to living off what you’ve built. And once that shift happens, the stakes feel much higher.

Why Retirement Feels Uncertain for So Many

Even the most diligent savers can find themselves unsure of what to do next. Here’s what we hear from many soon-to-be retirees:

• “I’m not sure how much I can take from my portfolio each year without running out.”

• “What if the market drops right after I retire?”

• “How do I create income that feels reliable?”

• “I don’t want to make a mistake I can’t undo.”

These aren’t hypothetical concerns; they reflect a very real transition most people face. The challenge isn’t just about having enough money. It’s about knowing how to use it wisely when there’s no margin for error.

When the Paycheck Stops, the Questions Start

To give you a better idea, let’s take a look at an example of a couple, Jack and Carol, and their retirement timeline. We’ll then discuss implementing three core methods to improve their retirement readiness.

They did what they thought they were supposed to. They saved consistently, paid off debt, and planned to retire at ages 65 and 67. However, when they looked closely at their numbers, one thing became clear:

They didn’t have enough to last.

The idea of leaving work suddenly felt risky, not freeing. Their savings, as it stood, wouldn’t sustain their lifestyle for the long haul. And they aren’t alone.

In fact, this is where many people find themselves just before retirement. They’ve worked hard. They’ve saved. Yet when it comes time to start spending that savings, uncertainty sets in.

The Real Risk Isn’t the Market — It’s Uncertainty

Many retirement fears are often framed around market volatility. But the deeper concern isn’t what the market will do next, it’s not knowing how volatility could affect your plan. When you don’t have a clear strategy for how you’ll draw income, when you’re unsure how your investments align with your withdrawal needs, every headline or downturn can feel like a threat.

And that uncertainty can lead to costly decisions:

• Pulling money out of the market at the wrong time

• Spending too conservatively and missing out on experiences

• Or, spending too freely and risking long-term stability

Still, uncertainty doesn’t have to rule your retirement. Small, strategic changes can dramatically shift the picture. Let’s go back to Jack and Carol. They were staring down a retirement income gap. Their savings would run dry before they reached the later years of retirement, which could mean tough trade-offs down the road.

But then they took three simple, coordinated steps to change their outcome.

1. Saving more helped.

   In their case, increasing their savings rate by 9% extended the life of their retirement income by about 3 years

   
   

2. Spending less in retirement helped more.

   Reducing their monthly expenses by $500 stretched their savings another 4 years.

   
   

3. Delaying retirement had the biggest impact.

   By working just 2 more years, Jack and Carol extended the lifespan of their retirement income by an additional 10 years.

In total: their retirement readiness improved by 17 years.

Why Complexity Isn’t the Answer

Some people respond to this fear by diving deep into complicated strategies or trying to “optimize” every move. But more information isn’t always empowering. It can overwhelm and lead to analysis paralysis.

The truth is, confidence in retirement doesn’t come from mastering financial jargon or using fancy tactics. It comes from clarity, knowing there’s a thoughtful, intentional plan guiding your decisions. And it comes from coordination, making sure your investments, income withdrawals, and spending goals all work together.

You need a plan that’s responsive, not reactive.

You Don’t Have to Do This Alone

For many retirees, what’s missing isn’t the willpower to manage their finances, it’s the support. A retirement plan isn’t a one-time document. It’s a living process that needs ongoing management and adjustment.

That’s why more and more people are looking for more than just investment talk. They want a complete approach, one that connects the dots between their portfolio and their income, and gives them guidance they can trust over time.

Some people feel confident managing these decisions on their own. Others want a clearer understanding of how to turn their savings into a reliable income stream and how to adjust it as life changes. If you’re starting to think through those next steps, this Quick Guide for Withdrawing from Your Retirement Plan breaks down how retirement income works across different life stages, and what to consider when creating your own withdrawal strategy.

Final Thought: Retirement Isn’t the End of Your Financial Life

Retirement is the beginning of a new chapter. The decisions you make at the start of it can shape your lifestyle, your peace of mind, and your ability to enjoy the years ahead. You don’t need to chase the markets. You don’t need to master complex strategies. You need clarity, coordination, and a plan you can trust to work as life unfolds.

If you’d like to talk through your retirement approach or just want a second set of eyes on your current strategy, our team at RetireAdvisers℠ is here to help.

The concepts expressed herein represent the views and opinions of Pension Consultants, Inc., and are not intended as legal, tax, or investment advice for any specific individual, account, or plan.