Retirees with $1 million to $3 million spend a median of $63,480 yearly, close to the average American household. Those with more guaranteed income spend up to $71,110 annually. Few retirees aggressively draw down assets, with many withdrawing less than 2% annually. Wealth doesn’t always mean lifestyle upgrades, even with millions saved.

Even those with $3 million to $5 million tend to spend more with guaranteed income, with a median of $133,380 annually. Confidence in spending is driven by predictability, not just account balances. Retirees are cautious with withdrawals, often taking only required minimum distributions. Confidence comes from knowing money is secure, not just in accounts.

Having millions saved doesn’t mean extravagant spending for retirees. Many are cautious with withdrawals and budget like average Americans. Wealthier retirees rely more on guaranteed income for spending confidence. Lifestyle upgrades don’t always follow wealth accumulation, as retirees prioritize financial security over frivolous spending.

Read more at Yahoo Finance: Can You Guess What A Rich Retiree With $3 Million Spends Per Year? It’s A Lot Less Than You’d Expect