ETFs & Funds
Home›ETFs & Funds›Fund Industry›Vanguard strategist urges retirees to shift from savin…
Vanguard strategist urges retirees to shift from saving to spending
Vanguard’s lead researcher, Garrett Harbron, links retirement income anxiety to Gallup survey results showing 62% of Americans worry they have not saved enough and 54% fear they cannot maintain their lifestyle.
Vanguard strategist Garrett Harbron says retirees often struggle with the transition from a saving mindset to a spending mindset, which can intensify stress once working ends.
In comments to Moneywise, Harbron pointed to an April Gallup poll where 62% of Americans said they worry they have not accumulated enough retirement savings, and 54% said they worry about maintaining their lifestyle.
Harbron, who leads Vanguard’s advised wealth management strategy and helped research the firm’s Principles for Retirement Income, outlined four principles aimed at reducing that anxiety.
Among them, Harbron said retirees should cover essentials first by using income they are unlikely to outlive, such as Social Security, a pension, or an income annuity, to help pay for needs including food, housing, and medical care. He also highlighted the role of covering basic expenses regardless of what happens in markets.