As Social Security faces insolvency as early as 2032, according to the most recent reports, most retirement savers share reluctance and lack planning on how to spend their nest egg, according to a recently published study by Corebridge Financial Inc.
Only 14% of surveyed retirees said they had a detailed strategy to manage their required minimum distributions, and 29% of surveyed pre-retirees age 55 or older reported having a plan for retirement account withdrawals.
Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.
Many respondents had negative associations with decumulation, with half citing “uncertainty” and 44% citing “anxiety.” Seventy percent of respondents said it was important that their nest egg not shrink in retirement, and just 28% said they were comfortable with retirement savings declining to cover living expenses.
More than half (56%) said they would regret running out of money during retirement, echoing earlier surveys finding that more people feared lacking money than death. Financial security was the most-cited retirement goal for Corebridge’s surveyed pre-retirees (85%) and retirees (82%), and 38% said they were spending less now to maintain the size of their nest egg, mirroring underspending previously studied among retirees.
Just 6% of respondents said they would regret leaving behind money at death, but most surveyed (83%) did not have a specific inheritance goal.
Among respondents who had decumulation plans, 57% said they were “highly confident” that they could manage their retirement spending, compared with 26% of respondents without plans.
“Retirement is meant to be enjoyed, but many find it difficult to give themselves permission to spend the savings they’ve worked so hard to build,” said Terri Fiedler, Corebridge Financial’s president of retirement services, in a statement. “Having a thoughtful decumulation strategy can help individuals manage complex financial decisions and feel more secure about the future.”
While conventional advice has favored a fixed decumulation rate, a growing number of advisers are recommended guaranteed lifetime income streams. Corebridge, which sells annuities, found that nearly 75% of their respondents said guaranteed lifetime income would positively impact their spending on “things that made them happy.” Those surveyed said a guaranteed income stream would enable them to spend more on travel (69%), home improvements (29%) and dining out (25%).
Corebridge Financial’s decumulation survey was conducted online by Greenwald Research between October 14 and November 3, 2025, among 2,210 adults aged 45 through 79 who had at least $100,000 in investable assets.
Replacing Social Security
Retirement nest eggs could see six-figure shortfalls if Social Security benefits are cut by 22% starting in 2032, the latest estimate of when the main Social Security trust fund will be depleted. This week, as the Social Security Administration Board of Trustees released its report, retirement account provider PensionBee Group PLC shared a study estimating that the average U.S. worker will need an additional $137,280 in retirement savings to make up for Social Security cuts.
Assuming no congressional action, the SSA’s “2026 Trustees Report” stated that benefit cuts would steadily increase to 38% by 2100 from 22% in 2032. PensionBee calculated the projected benefits cuts for 67-year-olds entering retirement over the next 42 years:
- A retiree in 2032 would lose 22% in benefits and need an additional $137,280;
- A retiree in 2038 would lose 22.1% and need $137,700;
- A retiree in 2048 would lose 24.1% and need $150,600;
- A retiree in 2058 would lose 28.3% and need $176,800; and
- A retiree in 2068 would lose 32.9% and need $205,500.
While a Generation Z saver who is currently 25 years old would need to save nearly 50% more than a 61-year-old Generation X saver, the Gen Z saver would also have the benefit of compounded interest. PensionBee estimated that older generations would need to make up more of the difference out of pocket:
- A current 61-year-old would need to save an additional $1,772 each month;
- A current 55-year-old would need to save an additional $824 each month;
- A current 45-year-old would need to save an additional $432 each month;
- A current 35-year-old would need to save an additional $304 each month; and
- A current 25-year-old would need to save an additional $234 each month.
The researchers concluded with standard advice—that retirement savers maximize their contributions; take advantage of employers’ matches and auto-escalation tools; diversify investments; and delay retirement to maximize savings.
“Every year Congress delays action [on Social Security], the catch-up cost shifts further onto individual workers,” said Romi Savova, PensionBee’s founder and CEO, in a statement. “While the overall program is safe, cuts to benefits are shockingly costly.”
Tags
Reported by
Reprints
Please contact Industry Intel at Industry Intel.
