How to stop feeling guilty about spending money in retirement
Written by Glen James
Host of the Retire Right & money money money (formerly my millennial money) podcasts & author of The Quick-Start Guide to Investing.
Recently we asked this in our Retire Right Facebook group: for those who have retired has it been challenging to start spending your superannuation money after accumulating it for so long?
The results are pretty interesting! The responses were as follows:
Absolutely! 31%
No, I'm loving it! 24%
Still unsure how I feel about it. 45%
Only 24% of our community are enjoying spending their hard-earned retirement savings! I want to turn this around. As a natural spender I feel it is my obligation to help you spend your hard-earned money! Whether you’re already in retirement or will be there in a few years here are 3 mindset shifts that I hope will let you spend with ease:
#1 New Mindset: ‘I've saved for years, now it's time to enjoy the life I've planned for.’
For decades, you’ve worked diligently, putting aside money with the goal of financial security in retirement. Now, it’s important to shift your thinking from saving for the future to enjoying the present. You’ve done the hard part—now is the time to reap the benefits of those sacrifices. Whether it’s travelling, pursuing hobbies, or simply enjoying more free time, this phase of life is about living out the plans and dreams you envisioned. Let go of the guilt associated with spending and embrace the purpose of retirement: to enjoy the freedom you’ve worked so hard to achieve.
#2 New Mindset: ‘Spending is the reward for the years of effort and discipline.’
Retirement is the culmination of a lifetime of financial discipline and hard work. While saving was essential, spending in retirement is not a detriment—it’s the reward. The money you’ve accumulated isn’t just for emergencies or distant needs; it’s meant to fund a lifestyle that reflects the effort you’ve put in. Instead of focusing on preserving every dollar, allow yourself to indulge in the things that bring you happiness, comfort, and fulfilment. You’ve worked hard, reward yourself for those efforts!
#3 New Mindset: ‘I can create a balance between maintaining security and enhancing my quality of life.’
One of the biggest concerns retirees face is the fear of outliving their savings. However, with careful planning, it’s entirely possible to strike a balance between financial security and enhancing your quality of life. Plus we have an age pension in Australia as a safety net! This mindset encourages you to enjoy today while still being mindful of tomorrow. By setting realistic budgets, working with a financial adviser if needed, and adjusting your lifestyle if required, you can continue to feel secure while also living life to the fullest. Retirement doesn’t have to be about choosing between frugality and fun—it can be about both.
Community question
Linda says: My siblings and I have recently needed to take over my 100-year-old mother’s share portfolio. I’ve tried to get all the information together on one web platform. I’ve tried ComputerShare, ShareSight and her broker’s (CMC) sites but they are either incomplete or impenetrable with jargon. Her accountant suggested a simple spreadsheet but her trading history is so complex over 32 years it also looks too hard. I’m also new to investing.
Does anybody have any recommendations for how to go about this? I want to document and monitor the performance of her share portfolio.
Glen: Linda's situation highlights a few key things when managing a share portfolio, especially one as complex as her mother’s, which spans over 32 years.
First, it’s important to recognise that investing is a long-term process. Even if you're in your later years, like Linda’s mother, there's still value in keeping investments going. Retirement doesn’t mean withdrawing from the investment world—you might still be building wealth for your future and potentially for your children.
Now, when it comes to the practical side of managing a portfolio like this, Linda will need to do some groundwork, but it sounds like she's already started, great work! Brokers such as CMC only keep records of trades they’ve executed (not the unrealised gains / losses for each holding), which means the historical data for her mother’s shares may not be complete. The shares may have been moved over to CMC from another broker in the past, too.
In this case, Linda has looked into share registries like Computershare which is a great place to start. These registries keep records for shares listed on the ASX, although the records may only go back to the early 2000s. For anything older, Linda might need to dig through her mother’s old paper records, like share contracts and dividend statements.
Given the complexity of the trading history and the long-term nature of the investments, it may be worth outsourcing this work to a professional, especially if the portfolio is of significant value. An accountant can help pull all the data together, ensuring the share cost bases are calculated correctly and that all tax implications are considered. This could save significant time and effort and avoid potential headaches down the road. There may need to be some assumptions made and this is best to be done by an accountant.
The lesson here for us still building wealth is to have a clear and structured system for your investments. It will save time later.
