We’re in our 70s, have $6 million in savings, and receive Social Security – why can’t we let ourselves enjoy it?

Key Points from 24/7 Wall St.

• Many older Americans struggle to shift from their frugal habits despite being financially secure.
• Starting with small indulgences like dining out or weekend getaways can help them ease into enjoying their wealth.
• A dedicated “fun fund” can enable guilt-free spending.
• Also: Take this quiz to see if you are on track to retire ^(Sponsored)

For many Americans, they can’t stop themselves from spending every dollar they make. However, for others, saving too much can become somewhat of a psychological problem. After years of saving money and living frugally, it can be difficult to turn that part of your brain off and actually enjoy the fruits of your labor.

Let’s look at a hypothetical couple and a surprisingly common problem many older Americans face today — and give them some hypothetical advice to improve their quality of life and happiness with money.

Meet Stewart, a 71-year-old retired doctor with $6 million in savings and retirement accounts. Between his investments and receiving the maximum Social Security payment, Stewart and his wife are financially secure and comfortably spend around $12,000 per month. Despite this solid financial footing, their children keep telling them to spend more and enjoy life—travel, upgrade their home, or splurge on experiences. Yet, no matter how often they’re encouraged, Stewart and his wife find it hard to break away from their frugal habits and tap into their wealth for more enjoyment.

Stewart’s situation is common among retirees who have built substantial wealth. Years of prudent saving and investing have made them financially secure, but the mindset that helped them build their nest egg now prevents them from fully enjoying it. Here are some strategies Stewart and his wife can explore to help them get more out of life without sacrificing their sense of financial security.

1. Understand Their Financial Picture—They Can Afford It!

First, Stewart and his wife should revisit their financial plan to clearly understand how secure they truly are. With $6 million in savings and investments, they are more than capable of maintaining their current lifestyle. At $12,000 per month, or $144,000 per year, they’re spending just a small portion of their assets.

Even at a modest investment return of 4% annually, their portfolio would generate around $240,000 per year—well above their current spending needs. This is on top of the maximum Social Security payments they are receiving. In short, Stewart and his wife have plenty of room to increase their spending without jeopardizing their financial stability.

2. Start Small with Spending on Enjoyment

If Stewart and his wife are hesitant to make significant changes, they can start small. Instead of making large, one-time purchases like an extended international trip or a luxury car, they could start by adding some indulgent experiences to their routine, such as:

• Dine at higher-end restaurants once a week.
• Book a weekend getaway to a nearby location.
• Try out activities they’ve never done before, like golf lessons or cooking classes.

These smaller steps can help ease them into a more relaxed spending mindset without feeling like they’re making a big, irreversible financial decision.

3. Allocate a “Fun Fund”

One way to bridge the gap between financial security and the emotional discomfort of spending more is to set up a dedicated “fun fund.” Stewart could carve out a portion of their savings—say $100,000 to $200,000—strictly for discretionary spending on travel, experiences, or hobbies. This way, they can spend guilt-free, knowing that the money is set aside specifically for enjoyment and won’t disrupt their retirement security.

Stewart and his wife could earmark funds for specific experiences, such as taking their children or grandchildren on a family vacation, upgrading their home or property, or buying a dream car. By separating this fun fund from their core savings, they may feel less hesitant to use it.

4. Think About Legacy and Family Experiences

Stewart and his wife might not feel comfortable spending on themselves, but they may be more motivated to spend on their family and loved ones. Instead of leaving everything as an inheritance, they could focus on creating experiences and memories with their family now. Whether it’s paying for a family vacation or helping their children and grandchildren with specific financial goals like education or home buying, these shared moments can provide immense joy.

They could also set up a family trust or use a portion of their wealth to support causes they’re passionate about, which could help align their spending with their values.

5. Embrace Travel in Moderation

Traveling is often suggested as a way for retirees to enjoy their wealth, but Stewart and his wife don’t have to go all out. They can plan trips that bring them joy without feeling overwhelmed or excessive. Perhaps they start with one or two trips a year—maybe a domestic trip to visit family, then a trip abroad to a country they’ve always wanted to explore. Travel doesn’t need to be extravagant to be rewarding; it’s about creating memorable experiences at a pace they’re comfortable with.

Additionally, they might find it meaningful to travel with family, sharing the experience and creating lasting memories together.

6. Consult a Financial Planner for Peace of Mind

For Stewart and his wife, the key barrier may be emotional, not financial. They’ve spent their lives saving and building wealth, and the idea of spending it—even when they know they can afford it—can feel foreign. Speaking with a financial planner could provide reassurance and a detailed breakdown of how much they can comfortably spend without impacting their long-term financial goals.

Time to Enjoy

Stewart and his wife have done an excellent job of securing their financial future, but now it’s time to enjoy it. By starting small, setting up a dedicated fund for indulgences, and focusing on experiences with their family, they can start to get more enjoyment out of life without the guilt or fear of financial instability. With some encouragement—and possibly a nudge from a financial planner—they can find the balance between maintaining their security and making the most of the wealth they’ve worked so hard to build.