The One Money Habit You Need To Have To Survive Retirement, According to Experts
Written by
Josephine Nesbit
Edited by
Zuri Anderson
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Retirement often brings freedom from the 9-to-5 grind, but it also introduces a new challenge of living on a fixed income. With rising costs of living and longer life expectancies, stretching your savings can be harder than expected.
“I have helped hundreds of people with a variety of different financial plans and I have found one thing that nearly all of them have in common: Small increases in spending over time can quickly destroy a retirement plan,” Doug Carey, chartered financial analyst (CFA), registered investment advisor (RIA) and president at WealthTrace in Indiana, wrote in an email.
Here’s what the experts had to say.
Control Your Spending
“The most important money habit is starting early and consistently saving a percentage of your income that you can comfortably set aside and not touch,” explained Chip Griffith, chief member experience officer and certified financial coach at OneAZ Credit Union. “The key is balance as well, so if you save too aggressively and an unplanned expense forces you to dip into your savings, it can derail your long-term strategy.”
Griffith recommends establishing a sustainable savings habit early on — ideally, 5% to 10% — which allows your money to compound and grow over time.
“It is surprising how quickly money can run out for most people in retirement if their spending increases by just 5% per year. This is the power of compounding, but in reverse,” Carey wrote.
According to Carey, when you withdraw more than planned, you’re not just reducing your savings, you’re also cutting into the money that could have continued to grow through compounding. Over time, that missed growth can lead to a much greater loss than the initial overspending itself.
Jonathan Rose, CEO of BlockTrustIRA, agrees that making your money last in retirement is vital, and maintaining control over your finances is about consistency.
“When I talk with retirees, one of the biggest questions I hear is: ‘How can I make sure my money lasts?’ After decades in finance, I’ve learned that the single most important habit is consistent portfolio rebalancing built on disciplined diversification,” he wrote in an email.
Start Building Smart Money Habits Before You Retire
Griffith advises increasing your savings allotment gradually as your budget allows and automating the process.
“Most importantly, treat those funds as untouchable for day-to-day needs,” he added.
And tracking your spending is just as important.
“It is extremely important to develop the habit of tracking and categorizing spending,” Carey explained.
To build this habit, he recommends pulling your last one to three months of spending data using bank statements, credit cards, Venmo, etc. Then, categorize every expense into buckets, such as housing, groceries, dining out, transportation, health care, discretionary spending and debt payments.
“You can use budgeting apps like YNAB or Simplifi to automate this. They’ll categorize and visualize where your money goes,” he added.
Rose also emphasized that financial discipline is a mindset best developed before retirement.
“The earlier you begin practicing investment discipline, the easier it becomes to stay steady during volatility,” he explained. “By developing that habit now, you’ll enter retirement with a portfolio designed for endurance, not just growth — one that’s ready to last through every stage of life.”
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