Ep 159 - Financial Psychology for Retirees, with Dr. Meghaan Lurtz
Discover how to overcome emotional roadblocks and build confidence in your financial decisions during retirement. In this episode, Joe speaks with Dr. Meghaan Lurtz, a professor at Kansas State University, researcher, speaker, and contributor to Kitces.com. They discuss financial behavior in retirement, spending psychology, and how to align your money habits with your values for a more fulfilling retirement lifestyle. Learn practical strategies to shift from saving, to intentional spending—without fear or regret.
Key Takeaways
· Emotions Drive Retirement Decisions More Than Math: Financial planning isn’t just about spreadsheets—it's about identity, fear, freedom, and behavior. Understanding how you feel about money is essential to making confident retirement choices.
· Spending in Retirement Requires a New Skillset: After decades of saving, learning to spend—without guilt or anxiety—is a psychological shift. Start with small experiments and grow your comfort level over time.
· Financial Conversations with Partners Are Crucial: Couples often enter retirement with very different money stories and beliefs. Using tools like nonviolent communication and "money dates" can build understanding and reduce conflict.
· Supporting Adult Children Requires Balance: Emotional urges to gift or help family members financially should be weighed against long-term retirement sustainability. Involving your advisor early creates room for strategic, value-aligned decisions.
· Advisors Support More Than Just Your Portfolio: A good financial planner helps with emotional clarity, life transitions, and spending confidence—not just investment returns. Their support extends beyond numbers to your overall well-being.
Ideas Worth Sharing
“Spending with purpose—on people and experiences—brings the most happiness.”
“Logic is rarely the reason why people do stuff with money.”
“You’ve been saving for 40 years—flipping that switch to spend is hard.”
“A healthy relationship with money is all about being intentional.”
“We don’t get a lot of practice talking about money—and that makes retirement emotional.”
Resources
Shaping Wealth - Behavioral finance training platform where Dr. Lurtz is a partner.
Kansas State University - Where Dr. Lurtz teaches financial therapy and psychology.
Kitces.com - Financial planning education website where Dr. Lurtz contributes articles.
Substack by Dr. Meghaan Lurtz - She writes about money, psychology, relationships, and philosophy (for consumers and advisors alike).
Mind Over Money by Dr. Brad Klontz
Money Mammoth by Dr. Brad Klontz
The Psychology of Money by Morgan Housel
The Geometry of Wealth by Brian Portnoy
Fight Right by Drs. John & Julie Gottman
Money Scripts – Developed by Dr. Brad Klontz
Nonviolent Communication (NVC) – Developed by Marshall Rosenberg
Money Dates – Promoted by Ashley Quamme (Financial Therapist)
Retirement Spending and Financial Behavior: Why Psychology Matters More Than Math
When it comes to retirement planning, most people assume it's all about the numbers—how much you’ve saved, your withdrawal rate, or your investment performance. But according to Dr. Meghaan Lurtz, financial psychologist and professor at Kansas State University, the emotional side of money plays just as big a role, especially in retirement.
In a recent episode of Your Retirement Planning Simplified, Dr. Lurtz shared powerful insights into financial behavior in retirement, and how retirees can better navigate the emotional and psychological shifts that come with this major life transition.
The Emotional Shift from Saving to Spending
One of the biggest challenges retirees face is switching from a lifelong habit of saving to confidently spending their money. Even when financial planners assure clients that “they’re going to be okay,” many still struggle with guilt, anxiety, or fear of running out of money.
Dr. Lurtz explains that this resistance is deeply rooted in our financial psychology. After 30–40 years of saving, retirees are suddenly asked to spend down their nest egg—a move that can feel counterintuitive and emotionally uncomfortable. The solution? Treat spending like a new skill. Start with small, intentional experiments. Try spending a little more over three months and assess how it feels—then adjust accordingly.
Financial Planning Is About More Than the Numbers
A healthy relationship with money isn’t defined by a spreadsheet. It's built on intentionality, awareness, and confidence. Dr. Lurtz encourages retirees to ask deeper questions: Why am I spending this money? How does this align with my values? Who do I want to enjoy this with?
Spending in retirement becomes more fulfilling when it's linked to experiences and relationships. Whether it’s funding a family vacation or outsourcing chores to free up time, spending with purpose often delivers the greatest satisfaction.
Couples, Communication, and Money Scripts
Financial behavior isn’t just individual—it’s relational. Many couples enter retirement with different money stories and beliefs. This can lead to tension or misalignment in retirement goals and spending habits.
Dr. Lurtz suggests using tools like nonviolent communication and money dates to foster better financial conversations between partners. Understanding—rather than trying to force agreement—is key to financial harmony.
Work With a Financial Advisor (and Maybe a Financial Therapist)
One consistent message in the episode is this: don’t go it alone. A financial advisor isn’t just there to run numbers—they help guide the emotional and strategic side of retirement planning. If emotional hangups or money conflicts become overwhelming, working with a financial therapist can help you explore and reframe your relationship with money.
Final Thought
Retirement isn't just a financial shift—it's a psychological one. By recognizing the emotional side of money, practicing intentional spending, and fostering open conversations, retirees can build a healthy, confident, and fulfilling relationship with their finances. If you're planning for retirement or currently navigating it, remember: understanding your financial behavior is just as important as understanding your portfolio.