Good morning, Retirement Starts Today Community! Welcome to Every Day is Saturday, the newsletter reminding us that in retirement, every day is Saturday (including Thursday mornings).

Pro Tip: IRS Payments Simplified

I found a great step-by-step guide from a CPA that guides you through making electronic payments to the IRS. I strongly recommend electronic payments over mailing a check—checks often get lost!

​Click here to view the video and bookmark it to reference for any year-end tax payments. ​​

​​Click here to view a recent video from my YouTube channel about 6 Reasons To Retire Before 62 With Under $1.2M

​Click here to work with us!

This holiday season tune in as we revisit some of our favorite podcast episodes of 2025.

Episode Breakdown:

• (0:00) Introduction
• (1:46) The study: Retirees underspending their savings
• (3:33) Why the 2% problem exists
• (6:10) The impact of underspending on taxes & an inheritance
• (8:11) The role of financial planning & behavioral coaching
• (9:20) Possible solutions: Turning savings into reliable income
• (11:04) Listener question: A simple withdrawal plan

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​Listen on Spotify | Listen on Apple​

Retirement Headline

The 2% Problem: Why Retirees Spend Less Than They Could

A new study shows retirees withdraw just 2% a year from their savings—far below the traditional 4% rule and well under what many could safely spend. Guaranteed income, like Social Security and pensions, is used freely, while personal savings often sit untouched.

This ultra-cautious approach may feel responsible, but it leads to missed opportunities, larger tax burdens, and less enjoyment in retirement. The money was saved to be spent, yet behavioral habits from decades of saving make it hard to shift into spending mode.

The Hidden Cost of Underspending

Keeping too much in savings can create major tax inefficiencies down the road. Required minimum distributions (RMDs) force withdrawals later in life, often pushing retirees into higher tax brackets.

Large account balances also lead to unintended inheritances. While leaving money behind can be a great gift, heirs often receive it at an age when it makes little impact. A lifetime of saving builds security, but when withdrawals are too small, the financial benefits of that hard-earned money diminish.

How to Turn Savings Into Reliable Income

One reason retirees hesitate to spend is that market-based withdrawals feel uncertain. A structured withdrawal system—one that deposits money regularly, much like a paycheck—can make spending feel more natural.

Guardrails that adjust withdrawals based on market performance provide flexibility without fear of running out. When spending decisions are automated and predictable, retirees can enjoy their money without second-guessing every withdrawal.

The goal isn’t reckless spending; it’s about using money efficiently while ensuring long-term stability. A steady, planned approach can replace hesitation with confidence.

Spending With Confidence, Not Guilt

Spending too little can be just as costly as spending too much. The money was saved for a reason, and using it wisely means balancing security with enjoyment. Automating income, setting clear withdrawal guidelines, and adjusting expectations can make all the difference. Financial security isn’t just about having enough—it’s about knowing how to use it.

Resources

• ​Click here to read, Retirees are reluctant to spend savings. Researchers say that's a problem​
• ​Click here to view my YouTube channel, Even Better Retirement
• ​Click here to order my book, Retirement Starts Today: Your non-financial guide to an even better retirement

I need your help...

I will be starting a new segment on my podcast: Retire TO something, not FROM something.

The segment will be brief at the end of the show and will share a fun retirement idea, along with links to learn more. Volunteer work and part-time “fun” jobs will be a common theme.

​Click here to share your ideas!

That's it for our four hundred and eighth installment of "Every Day is Saturday." As always, I read (and usually reply to) every listener email. Got a question? Hit reply—you just might hear your name on the show.

Enjoy your “Saturday,”
​Benjamin Brandt

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