RETIREMENT INCOME RESEARCH

Guaranteed Income: A License to Spend

Research by David Blanchett and Michael Finke examines why retirees with more guaranteed income may feel more comfortable spending than retirees holding the same wealth primarily in investments.

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Research SummaryRetirement Income Institute / Protected Income

What this resource explores

Retirees often save successfully but remain reluctant to spend from an investment account. This research explores whether the form of retirement wealth—guaranteed income versus non-annuitized assets—changes spending behavior and retirement confidence.

Source: Retirement Income Institute / Protected Income
Last reviewed: July 27, 2026

Key Takeaways

The study reports that retirees with a higher percentage of wealth in guaranteed income spend more than retirees with equivalent non-annuitized wealth.
In the survey, 59.4% said they would feel more comfortable spending on nonessential activities from $10,000 of additional income than from $140,000 of wealth.
The authors connect underspending to both rational longevity concerns and behavioral resistance to seeing account balances decline.
Delayed Social Security claiming, pensions, and private income annuities are discussed as possible sources of annuitized income.

Questions to Consider

Would dependable income make it easier to enjoy retirement savings?
How much of essential spending is already supported by Social Security or pensions?
What tradeoffs—liquidity, guarantees, inflation, fees, and legacy—must be reviewed before adding an income product?

SOURCE & ACCESS

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This is an original SSFG summary of third-party research, not a republication or recommendation. Insurance guarantees depend on the claims-paying ability of the issuing company. Product suitability varies by household.

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This information is general and should not be treated as individualized investment, tax, legal, insurance, Social Security, or Medicare advice. Sources named on this page do not endorse Solutions for Seniors Financial Group.