Many financially secure individuals still experience anxiety about retirement, even with $1 million saved and no debt. Fear of portfolio drawdowns and uncertainty about income sources can create discomfort. Behavioral finance research shows stress persists despite meeting traditional benchmarks, highlighting a psychological hesitation to spend rather than a lack of affordability.

Households with guaranteed income coverage for fixed expenses tend to be more resilient in retirement, compared to those heavily reliant on portfolio withdrawals. Financial advisors can stress-test retirement scenarios to assess sensitivity to market downturns and offer guidance on transitioning from work to retirement.

Consolidating accounts and cash flow can help retirees distinguish between guaranteed income sources and variable expenses, reducing perceived financial risk. Tools like SoFi provide clarity on monthly spending and income sources, facilitating a smoother transition into retirement.

Adding income sources less tied to market movements, such as fractional real estate investments, can ease the discomfort of selling assets for living expenses. It’s important to separate emotional discomfort from genuine financial risk when considering retirement, focusing on resilience and clarity in decision-making.

Read more at Yahoo Finance: I’m 61 With No Debt, Financially Secure, $1 Million Saved and Still Afraid to Retire