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From Saver to Spender: Navigating the Retirement Mindset Shift
Let’s start with a familiar—and slightly ridiculous—scene: a retired couple with $750,000 safely tucked away in investments, quietly nibbling no-name tuna on toast while muttering, “We just can’t afford steak anymore.” Sound absurd? Sadly, it’s not fiction. Despite having ample savings, many retirees live with perpetual financial anxiety, clinging to their nest egg as if it were their last roll of toilet paper during a pandemic. Meanwhile, they try to survive solely on government pensions, making life unnecessarily stressful and, let’s face it, a bit joyless. I've wrestled with this as someone who entered retirement earlier than expected. Years in finance taught me how to budget, invest, and plan, but transitioning from saving to spending required a whole new mindset. I learned quickly that being financially “prepared” doesn’t mean you’re emotionally or psychologically ready to spend. So, what’s going on here? The Hypothesis: Individuals Prefer Spending Income Rather Than Saving Retirees prefer spending income (pensions or annuities) rather than withdrawing from savings or investment accounts. This isn’t just a quirky behavioural trend—it’s a deeply ingrained bias, and neuroscience supports it. Research by Michael S. Finke, a professor at The American College and noted researcher in retirement economics, revealed that retirees tend to spend most of their guaranteed income but only withdraw about half of their savings. In his words: “Retirees spend lifetime income, not savings.” The implication is clear: it’s not about how much money you have but how it feels to use it. This is partly due to what behavioral economists call “mental accounting.” We categorize our money into imaginary buckets: income is for spending, and savings are for safekeeping. Unfortunately, this can lead to financially irrational and highly risk-averse behaviors, such as eating cat food while having six figures in a TFSA. The Neuroscience of Spending Fear Add a little neuroscience, and the story deepens. As we age, changes in the brain, particularly in the prefrontal cortex, can affect how we assess risk and manage uncertainty. This can lead to: • Increased loss aversion: We more acutely feel the pain of spending or loss. • Decision paralysis: We delay or avoid withdrawals, even when reasonable. • Heightened anxiety about the future: We fear running out more than we enjoy spending in the present. This Fear of Running Out (FORO), which I’ve written about in a previous post, keeps many retirees in a defensive crouch, emotionally hoarding their savings rather than using them to enrich the years they worked so hard to reach. It’s no wonder money stress impacts us so deeply—our brains are wired that way. From an evolutionary perspective, our minds are designed to fear scarcity because running out of resources once posed a real danger. When we perceive that threat today, whether it’s a dip in our investments or rising grocery bills, our brain shifts into fight-or-flight mode and begins releasing cortisol—the stress hormone that heightens our anxiety. Then our amygdala, that little alarm system in our brain designed to protect us from danger, can’t differentiate between a financial crisis and a sabre-toothed tiger. So, it reacts similarly, nudging us toward quick, often irrational decisions. Sometimes that means freezing and doing nothing; other times, it leads to panicking and regretful choices. Understanding how our brains function under financial stress allows us to step back, breathe, and make better, calmer decisions—ones that serve us, not scare us. Retirement can be wonderfully freeing—no more commutes, no more meetings—but let’s be honest: it also comes with a significant shift in financial responsibility. Without that steady paycheck, it’s completely normal to feel uneasy about how you'll manage your money, especially when unexpected expenses arise. Sure, there are mindset tools and mental prep strategies that can help ease that existential “What now?” feeling before retirement. But let’s be specific—here are the real, concrete financial stressors that keep many retirees awake at night: • Not Enough Income: One of the biggest fears? Your savings won’t stretch far enough to support the life you want—or handle surprises. • Healthcare Costs: As we age, medical expenses climb. It’s not just the big stuff, either. Even prescriptions and dental bills can blow a hole in your budget. • Market Ups and Downs: A stock market dip can uniquely affect retirees. Observing your investments fluctuate can cause genuine anxiety regarding your income, especially in today’s “trade war” environment. • Inflation: We all feel it. The gradual rise of higher prices erodes your purchasing power, making that carefully saved nest egg feel less secure. • Living Longer Than Planned: It's both a blessing and a challenge. If you're healthy and living well into your 90s (and many do), the big question becomes: will your money last as long as you do? Here’s the good news: when you acknowledge these risks and build a plan around them, you exchange fear for control. And with power comes clarity, confidence, and significantly less stress. That’s when you can truly enjoy retirement—on your terms. How to Flip the Script: Make Savings Feel Like Income So, how can retirees overcome this psychological hurdle? Here are 3 powerful strategies: 1. Create Artificial Income Streams Turn a portion of your savings into predictable, automatic income. This could mean: • Setting up regular monthly withdrawals from an RRIF • Purchasing an annuity • Utilizing a bucket strategy, in which one portion of savings is maintained in a cash-like account to replicate a paycheck When money shows up like a salary, you’re more likely to feel permission to spend it. 2. Use Home Equity as a Back-Up Income Source A secured line of credit (HELOC) or a reverse mortgage can serve as a “Plan B” or income buffer. Knowing that the funds are available can alleviate anxiety, whether you use them or not. 3. Involve Family in Income Planning Sometimes, the best way to reframe a spending decision is through conversation. Adult children or trusted advisors can help develop a spending strategy that feels both secure and reasonable. Families can be invaluable in helping you design: • Emergency funding plans for unexpected expenses like healthcare • Gifting strategies (Want to help the kids or grandkids? Do it while you’re alive to see the joy!) • Income simulations replacing a regular paycheck Open conversations can also help uncover mismatched expectations. For instance, some older adults worry that spending their savings will leave less of an inheritance for their children, which might cause disappointment. But in many cases, their children would much rather see their parents use that money to care for themselves and enjoy their retirement years. The great irony of retirement? The hardest part isn’t building wealth; it’s allowing yourself to enjoy it. So, let’s retire the notion that frugality is forever. Replace the guilt of spending with the confidence of an income strategy. And if you're facing your savings with trepidation, remember: cat food may be a pantry staple for your pet, but it’s no reward for 40 years of hard work. Retirement isn't merely a financial phase—it’s a shift in mindset. That shift begins when we stop hoarding and start living.
A Brief History of Stock Market Crashes
Stock market crashes have punctuated economic history with sudden downturns that reshape public confidence, policy decisions, and financial systems. From the Great Depression to the 2008 financial crisis, these events have not only disrupted global economies but also exposed systemic vulnerabilities and sparked reforms. As markets face ongoing volatility and new risks, understanding the history of stock market crashes—and the factors behind them—is vital for investors, policymakers, and the general public. This topic offers journalists compelling opportunities to explore financial history, economic psychology, and risk management. Key story angles include: The Great Depression (1929): Analyzing the causes of the most infamous crash in history and its lasting impact on global economic policy. Black Monday (1987): Investigating the role of computerized trading and investor panic in one of the largest one-day percentage drops in stock market history. Dot-Com Bubble (2000): Exploring how tech speculation and investor overconfidence led to the collapse of early internet startups. The 2008 Global Financial Crisis: Examining the role of housing market speculation, subprime lending, and financial deregulation in triggering a global recession. Behavioral Economics and Market Psychology: Understanding how fear, speculation, and herd behavior contribute to market volatility. Are We Due for Another Crash? Looking at current economic indicators, tech valuations, interest rates, and global tensions that could signal future instability. With markets continuing to respond to global events and economic shifts, revisiting the history of crashes offers valuable insights into how financial systems react under pressure—and how societies can better prepare for what comes next. Connect with an expert about the History of Stock Market Crashes: To search our full list of experts visit www.expertfile.com
A Shift in President Trump’s Messaging on the Economy
Provost Emeritus and the Lawrence Herbert Distinguished Professor Herman A. Berliner was featured in a Newsday story about President Donald Trump’s economic messaging, which has shifted from promises to end inflation to warnings of “a little disturbance” amid lagging consumer confidence and a slumping stock market. “This is a very popular president. He’s listened to by a lot of people in the country. If he says that the economy is going to go through some turbulence, people will believe that,” said Dr. Berliner. “He’s an enormously influential person in terms of both steering the economy and reassuring the country about the economy.”
The Battle Begins - How Long will Trump's Trade Wars Last Between China, Canada and Mexico?
It has begun. March 04 signaled the first day of what could be a long and drawn out trade war between America and it's two closest neighbors and trading partners - Canada and Mexico. President Trump also doubled the tariff he slapped last month on Chinese products to 20%. Markets are reeling, politicians are scrambling and the world is watching to see how the tariffs on Mexican and Canadian imports will affect consumers and the economy. In Canada, the reaction was swift. Businesses pulled American bourbon, wine and other imported spirits from store shelves along. Canada also threatened to turn off imported power that keeps the lights on and factories running in states like Michigan, Minnesota and New York. As well, Canadian Prime Minister, Justin Trudeau announced immediate retaliatory measures. Trudeau said Canada will not back down from a fight in the face of "completely bogus and completely unjustified" trade action that has the potential to ruin bilateral relations and prompt job losses, economic devastation and higher inflation on both sides of the border. Trudeau has already slapped tariffs on an initial tranche of $30 billion worth of American goods and promised $125 billion more will face levies in three weeks' time. He said more, non-tariff measures are coming if Trump doesn't immediately back down. Trudeau said Trump is doing something "very dumb" by attacking Canada like this, given there will be serious ramifications for American workers and consumers with higher prices on everything from food, car parts and fertilizers to pharmaceuticals and paper products. March 04 - CBC News Meanwhile, there have been some indicators that President Trump may be willing to negotiate. President Donald Trump will “probably” announce tariff compromise deals with Canada and Mexico soon, Commerce Secretary Howard Lutnick said Tuesday. The potential agreements would likely involve scaling back at least part of Trump’s brand new 25% tariffs on imports from Mexico and Canada, he added. Lutnick’s comments came minutes after the U.S. stock market limped to a close for a second day of sharp declines, spurred at least in part by investors’ fears that Trump’s aggressive policies will ignite a crippling trade war. After his remarks, U.S. stock futures tied to all three major averages rose. The compromises with Canada and Mexico will likely be revealed as soon as Wednesday, Lutnick said on “Fox Business.” March 04- CNBC News There's a lot of speculation out there - and lingering questions: What key American industries will benefit, which ones will suffer? When and will consumers see price hikes at the stores? Will there be a lasting negative impact felt on the American economy? What does this mean for the USMCA that was currently in place? If you're a journalist covering tariffs and the trade war - then let us help. William J. Luther, Ph.D., is an associate professor of economics at Florida Atlantic University, director of the American Institute for Economic Research’s Sound Money Project, and an adjunct scholar with the Cato Institute’s Center for Monetary and Financial Alternatives William is available to speak with media. Simply click on his icon now to arrange an interview today
An Underwhelming October: The Latest Jobs Report
October brought disappointing news in the most recent U.S. jobs report. In the last jobs report before the U.S. presidential election, only 12,000 jobs were added. This is significantly lower than the expected number of 100,000, marking the slowest hiring month in years. This jobs report is reflective of the multiple hurricanes that ravaged the country this month and the ongoing Boeing strike. Dr. Jared Pincin, economic expert and associate professor at Cedarville University, has provided insight into the current economy of the U.S. and how announcements like this could affect the future. Here are three key takeaways from Pincin's recent interview: The October jobs report may have been skewed by the two major hurricanes and the Boeing strike that have hindered Americans from working temporarily. How will the Federal Reserve view this report as they consider future rate cuts? The stock market can have strong reactions to announcements such as this. What will the market do with these numbers that are unexpected but potentially untrustworthy? This jobs report is the last key piece of economic data to come out before the presidential election on November 5. Is there any chance that voters change their minds based on this news? If you are covering the recent jobs report or the U.S. economy and need to know more, let us help with your questions and stories. Dr. Jared Pincin is an expert on economics and is available to speak to media regarding the job market, inflation, and what this means for families in the United States – simply click on his icon or email mweinstein@cedarville.edu to arrange an interview.
Reddit Shares Expected to Commence Trading on NYSE | Media Advisory
In a move emblematic of the digital age's intersection with traditional finance, Reddit, the vast online community platform, is poised to debut its shares on the New York Stock Exchange (NYSE). This event marks a significant milestone for the company, celebrated for its user-generated content and vibrant forums that span every conceivable interest. For investors, tech enthusiasts, and users alike, Reddit's transition from a private to a public entity opens up discussions on the valuation of online communities, the future of digital platforms, and the implications for the broader stock market. Key sub-topics include: Initial Public Offering (IPO) Details: Insights into Reddit's valuation, share pricing, and the IPO process. Impact on the Tech Industry: What Reddit's public listing means for the tech sector and other social media platforms. User Community Reaction: How Reddit's dedicated user base perceives the move to go public and potential changes to the platform. Market Performance and Investor Sentiment: Analysis of investor interest, market trends, and the potential for Reddit's stock. Corporate Governance and Strategy: The shift in Reddit's management approach post-IPO and strategic plans for growth. The Role of Digital Platforms in Modern Investing: How Reddit and similar platforms influence investor decisions and market dynamics. For journalists seeking research or insights for their coverage on this topic, here is a select list of experts. Scott Stratten President & CEO · UnMarketing Samantha Bradshaw Doctor of Philosophy Candidate · Oxford Internet Institute David Meerman Scott Marketing Strategist, Keynote Speaker, Bestselling Author Sean Thoennes, Ph.D. Associate Faculty - Media Psychology · Fielding Graduate University To search our full list of experts visit www.expertfile.com Photo by Brett Jordan
Ask the expert: 2024 economic outlook
Although the economy has improved since the COVID-19 pandemic, inflation has been a challenge for many Americans throughout 2023 and the economy remains a top issue ahead of the 2024 election. Experts are already making predictions about interest rates, inflation and the market for next year. Antonio Doblas Madrid is an associate professor in the Department of Economics in Michigan State University’s College of Social Science. He reflects on the economy this past year and answers questions about what you can anticipate about the economy in 2024. What are a few of the most memorable economic events of 2023? The economy in 2023 reminds me of Rocky Balboa, the boxer with a strong chin from the Rocky films who, despite getting hit over and over, keeps moving forward. A year ago, the consensus prediction among investors and professional forecasters was slower growth and higher unemployment. Inflation was still above 6%, the Federal Reserve increased interest rates to one of the highest rates in 40 years, and the stock market ended 2022 in the red. Many observers said a ‘soft landing’ was a pipe dream and a recession inevitable. The year 2023 brought its own set of challenges. To name a few, a debt ceiling standoff started in January and continued until May, bringing the government dizzyingly close to default and causing a ratings downgrade. In March, the failure of Silicon Valley Bank started a crisis that, had it not been contained by a historic expansion of deposit guarantees, would have spread through the system and taken down the economy. A war broke out in Gaza. A large-scale auto workers strike temporarily shut down large parts of the sector. And the economy of China, a major trading partner, decelerated. Given all this, it is remarkable how good the numbers look right now. Inflation has steadily fallen to around 3% and is now within striking distance of the 2% target. The most recent gross domestic product, or GDP, report shows a robust 3% year-on-year growth rate, the unemployment rate remains at 3.7%, and the stock market has made a roaring comeback. The numbers look stronger than those of other major advanced economies, such as the eurozone, the United Kingdom, Japan or Canada. However, it is too early for a victory parade. The fight against inflation is not over, monetary policy has long and variable lags and, even in a strong economy, many people are struggling. But, thus far, it is hard to imagine a softer landing than 2023. What’s expected to happen with the economy in 2024? With the usual caveat that even the best predictions have a margin of error, professional forecasters see the economy still growing in 2024, albeit more slowly. The numbers hover around 1.5% for real GDP growth and 4% for the rate of unemployment. This paints a picture of moderate growth, and a labor market that, while no longer crushing records, is still within the range of what can be called full employment. What’s predicted to happen with inflation? Forecasters and market-based measures of expectations both predict that inflation is likely to continue falling gradually in 2024, to about 2.5%. Thus, the inflation shock that hit the economy is expected to continue fading, although it may take some time to go that last mile from 3% to 2%. The Fed also appears to be quite optimistic on inflation, given its latest forward guidance. What will happen with interest rates in the new year? The Fed expects inflation to fall quickly, so quickly, in fact, that it has started to reverse the hawkish policy of the last two years in its forward guidance. This means that, although the Fed has not lowered interest rates yet, it has started talking about the possibility of rate cuts — three of them — in 2024. With the economy still at full employment, this clearly means that the Fed is expecting inflation to continue to fall. How could the presidential election affect the economy? There is a popular belief that election uncertainty is detrimental to the economy, but we do not really see that in the GDP data. Growth rates in presidential election years are not lower than average. On average over the last few decades, there is a small negative effect on the stock market in election years, but it disappears in the 12 months following the election, regardless of which party is elected. What economic words of wisdom can you share for 2024? It seems to me that the perception of the economy is worse than the reality. So, I would recommend stepping away from the noise and looking at the data for some objective measures. As far as saving for retirement goes, I think mainstream financial advice is solid. So, listen to your financial advisor if you have one. If you don’t, that’s okay, it is not that hard. There are many free tools, like retirement calculators, to help you figure out how much to set aside monthly. Take advantage of employer-provided and tax incentives. Invest mostly in stocks when young, gradually switching to fixed income as you age. For equities, follow a passive strategy. Buy and hold index funds. Do not try to pick stocks or time the market. If you are at the fixed-income stage, you may want to open a high-interest CD to lock in a high rate before the Fed starts cutting rates again. Finally, set up your contributions automatically draw, stop thinking about money for a few months and invest instead in nonfinancial assets, like relationships and health. Looking to know more about the economic outlook for 2024 or do you want to connect with Antonio Doblas Madrid? To schedule an interview - simply contact Jack Harrison, Public Relations Coordinator today.
With inflation rampant, everyone is concerned about money and the economy -- not just the prices on everyday goods and services, but their investments as well. The situation has people on edge. Rick Franza, dean of Hull College of Business at Augusta University, said there are differences between the economy and the markets. “Part of that is in the economy, we worry about now and the stock market is more forward-looking, so there’s always some disconnect between the financial markets and the economic reality," Franza said. "The disconnect seems to be worse than ever. There’s less correlation between the economic news and where the stock market goes.” “We used to think that a good jobs report would make a good economy, and typically it does, but in the last couple of months when the jobs report was good, the market has tanked. People are reading it as the strong job market means inflation is not under control." Franza indicated there is a fear factor when it comes to the stock market and its steady decline over the last nine months. Younger investors in the market haven’t seen many bad times, so they are fearful. He also said people nearing retirement are fleeing the market as well. When it comes to the drop in the stock market, it affects anyone who has investments. “Most of us have some kind of investments, especially in retirement accounts,” Franza added. Inflation though, has been the dominating factor in the market right now. "The impact of inflation will be more on small businesses. The large businesses will find a way to weather the storm. If inflation continues and companies can’t be profitable, they’ll start laying off people. Then we’ll have a recession, which will reduce inflation.” It could also have a rippling affect on consumer choices and ultimately costs. “If more companies go out of business, it’ll give us fewer choices, which means the supply chain will be restricted. Then, you’ll pay higher prices because of fewer options. In the long run, if the Fed sticks to its plan to keep raising rates, it will reduce inflation.” If you're looking to know more about this important topic, then let us help. Franza is available to speak with media about trending issues like inflation, small business and the economy – simply click on his icon now to arrange an interview today.
Last month, workers at an Amazon warehouse in Staten Island voted to unionize. In the decision's wake, employees across other firms—backed by national labor organizations—are following suit. Villanova University economics professor Cheryl Carleton, PhD, explains that the successful warehouse unionization in New York (a grassroots initiative) is changing the way we view labor unions. "It prevents employees from thinking about unions as just the large existing unions," notes Dr. Carleton. "Workers themselves can coalesce and maintain a unified front to negotiate for what they need from firms." And if unions succeed, firms without unions must compete to entice employees to their operations. As a counterweight to growing unionization efforts, companies have increasingly engaged in the use of intimidation tactics. We see this in the ways firms retaliate against union organizers. "Many large firms that have lots of money and have fostered strong relationships with political powers do not want to let workers have a stronger voice in negotiation of wages, benefits and work rules. They will try to have these unions nullified or intimidate workers not to join them," says Dr. Carleton. "There has been considerable consolidation in industries in the United States, which gives firms a lot more power." And according to economics professor Mary Kelly, PhD, "firms will argue that if they compensate existing [union-represented] workers with higher pay, better benefits and improved working conditions, those higher costs will limit the number of new workers hired, encourage the replacement of some labor with capital/technology if possible and/or 'force' prices higher to consumers." But even if unionization fails, there are still costs to the company. "We see this now with companies increasing the benefits they provide and spending more money to prevent more unionization efforts. The 'spillover' effects of the presence or threat of unions increases cost to firms," says Dr. Carleton. But we still don't know the final economic impact of unionization. "Companies, the stock market and shareholders always respond to change and uncertainty, so when a company unionizes it is a period of uncertainty," says Dr. Carleton. "If the company does unionize, does it create more stability and more profitability? Or does it end up being more costly for the firm? Time will tell!" Despite all the uncertainty, "the idea of unions and the need for unions is still present, and the current labor market situation has given workers the impetus they need," Dr. Carleton says. "Unions are necessary to stand up to industries. Each worker has little power, but combined workers have a stronger voice."
Market jitters making you anxious? Our expert might have the remedy to calm your nerves.
So far, 2022 has been, in a word, volatile. With the emergence of omicron, supply chain issues choking the economy, inflation the highest it has been in decades and now the war drums beating in Europe, investors are getting nervous and the markets are showing the strain. As political guru James Carville once said, "It's the economy, stupid!" Following that sage advice, Augusta University’s Wendy Habegger is here to offer expert perspective to journalists looking to figure out just what’s going on with the markets and what investors and the public can expect in the coming months. Q: What's the best advice to give people when the stock market is on such a roller coaster ride? “Frankly put, if one can't stomach when the roller coaster drops, don't get on the ride. If one does not have much tolerance for risk, they should not invest in the stock market. If one is already invested in the stock market and breaking into a cold sweat every time they look at their stocks, then they need to take a cash position, meaning cash out of the stock market. The market does not reward anyone based upon their level of anxiety. What good is making gains on stocks if one will turn around and spend those gains treating their ulcers? I liken it to pro sports athletes who don't retire when they are still healthy. What good is all the money they earned if they are only going to be spending it on medical treatments for the rest of their lives? What kind of quality of life is that?" Q: With the market trending down right now, if people can invest, is this the best time to do so? “Whenever the market trends down, it is always a great time to buy stable companies with solid cash flows and certain commodities. Look for those companies and commodities that always do well regardless of what is happening in the economy. But remember my response to the above question. One should do this if and only if they can tolerate risk.” Q: Should people look at safer places to put their money for the time being, and what would some of those places be? “Again, this depends upon their level of risk tolerance. If they are risk tolerant, they should shift into less risky investments. If they are not risk tolerant, cash out and put it in their savings accounts or CDs.” Q: Does the emergency fund rule of thumb still come in to play, maybe now more than ever? “Yes, but I don't go by the standard rule of thumb for emergency savings – having three to six months of expenses saved. I teach students their goal should be to have 12 months of expenses saved. The three to six months rule is obsolete. We saw this with the recession of 2007-09 and with the pandemic. People need to be able to live without employment longer because there is no definitive time frame for when one will find gainful employment and the government should not be relied upon to support the mass population in the meantime. Also, even when the government does provide assistance, not everyone receives it and some still never recover from the aftermath. “ The economy is front and center for just about every American business, investor and household – and if you’re a reporter looking to know more, then let us help. Wendy Habegger is a respected finance expert available to offer advice on making the right money moves during volatile times. If you’re looking to arrange an interview, simply click on her icon now to arrange an interview today.
