09.29.26 Ask An Advisor With Wes Moss

September 29, 2026

AI Summary

5 min read

The Psychology of Spending in Retirement: Why Retirees Hoard Assets and How Income Streams Help

Wes Moss, the financial advisor on the Clark Howard Show, opens with a striking finding from retirement research: the typical retiree underspends by roughly 8% of what they could safely spend, and wealthier retirees underspend by 47 to 53%. These numbers come from the University of Michigan's Health and Retirement Study, cited by financial journalist Jean Chatsky in her book The Forever Paycheck. The pattern is familiar to anyone who has watched a retired parent sit on a growing nest egg while living below their means.

The Income Versus Assets Problem

The core psychological barrier, Moss explains, is that retirees are perfectly comfortable spending money that arrives as a regular income stream—Social Security, a pension, a monthly check—but deeply reluctant to draw down their accumulated assets. Chatsky's own mother illustrates this vividly: she retired with $1.6 million, collected Social Security and a small survivor pension from her husband, and spent those checks freely. But she would not touch her principal. When she died twenty years later, her net worth had actually increased.

Continue reading the full summary in the app — free to try.

Read Full Summary →

Free • No credit card required

Listen to Audio Summary Open in App

Never miss an episode of The Clark Howard Podcast

Get every new episode summarized in your inbox — free, ~5 minutes to read.

No spam. Unsubscribe anytime.

What you'll learn

1 (01:04) **Welcome & Topical Previews** - Krista introduces Wes Moss and teases two big topics: why retirees are afraid to spend money and the surprising comeback of pensions.
2 (02:22) **The Psychology of Underspending in Retirement** - Wes explains why retirees hoard assets but freely spend income streams, drawing from Jean Chatsky's book "The Forever Paycheck" and academic research.
3 (04:56) **The "License to Spend" Problem** - Researchers propose that turning assets into guaranteed income streams gives retirees psychological permission to spend more freely.
4 (05:57) **The Growth-to-Income Shift Strategy** - Wes presents his preferred alternative: shifting your portfolio from 90% growth to a mix that includes more income-producing assets.
5 (10:20) **Listener Question: Mortgage Paid Off, Where to Invest Next?** - A 51-year-old "Financial Freedom Fanboy" will have his mortgage paid off soon, freeing up $3,500/month, and wants to know where to put that money.
6 (12:49) **Listener Question: 529 Plan vs. Trump Account for a 7-Year-Old** - "Curious Parents in Illinois" have $78,000 in a 529 and ask when to stop contributing, plus how to handle Roth conversions for a Trump account.
7 (16:21) **Listener Question: Mixing Pre-Tax and Roth in One 403(b)** - Marta from West Virginia asks who decides how much comes from pre-tax vs. Roth money when withdrawing.

+ Full timestamped outline available in the app

Guests on this episode

Wes Moss

Show Notes

Secret to Giving Yourself 'Permission to Spend' in Retirement & Are Pensions Back?

Wes dives into new research showing that median-wealth retirees underspend their potential income by 8% – and wealthier retirees underspend by a staggering 47% to 53%. Wes breaks down the psychological difference between spending assets versus spending income streams, and the little-known shift that can give you the "license to spend" without locking your money away in an annuity.

Plus, are pensions making a surprise comeback? Wes explores recent Wall Street Journal data showing thousands of companies adding pension-style plans, why workers want them back, and what this means for the future of retirement.

Mentioned on the show:

All this and more on the September 29, 2026, Ask an Advisor episode of the Clark Howard podcast. Submit your questions: WesMoss.com/ask

Discover the research-backed path to a happier retirement – order The Retire Sooner Method by Wes Moss today at retiresoonermethod.com
We