Saving for retirement gets a lot of attention. Spending those savings carefully can be just as important, yet it remains one of the least understood parts of financial planning.
A recent survey found that only 31% of Americans ages 45 to 79 know what “decumulation” means: the process of drawing down retirement assets over time. The finding comes from Corebridge Financial’s 2025 decumulation study.
That uncertainty may help explain why many retirees spend far less than they could. Research from the Employee Benefit Research Institute found that about one-third of retirees still had 100% or more of their initial retirement assets remaining by their mid-80s, even after two decades in retirement.
Decumulation is the flip side of accumulation. After years of contributing to 401(k)s, IRAs, and other accounts, retirees must shift to converting those balances into income that supports their lifestyle, covers rising healthcare costs, keeps pace with inflation, accounts for taxes, and lasts as long as they do. Unlike accumulation, there is no single formula that works for everyone, because each retiree’s mix of guaranteed income, savings, expenses, and goals is different.
Common withdrawal guidelines, such as the 4% rule, can offer a useful starting point, but they were not designed to account for every personal circumstance, including changes in spending needs, market downturns early in retirement, unexpected medical costs, or a desire to leave an inheritance. Treating any rule of thumb as a permanent plan can lead to overspending, or, as the EBRI data suggests, to excessive caution.
The shift from saving to spending is not only financial. It is emotional too. After decades of disciplined saving, watching account balances decline can feel uncomfortable, even when the plan calls for it. Building confidence in a withdrawal strategy often takes as much attention as building the assets themselves.
A financial advisor can help bridge that gap. By reviewing your full financial picture, including Social Security timing, pension income, healthcare costs, and tax-efficient withdrawal sequencing, an advisor can help build a decumulation strategy tailored to your goals rather than a generic rule of thumb. That conversation should also cover how much you can comfortably spend each year, how to adjust if markets fall early in retirement, and how to balance spending today with leaving a legacy. Regular check-ins then allow the plan to adapt as markets, tax laws, and personal circumstances change.
At Cramer Capital Management, we believe a thoughtful spending strategy deserves the same care as the saving strategy that came before it. If you are approaching retirement, or already there, and want help turning your savings into a confident plan, we welcome the conversation.