Waiting for the government to push you to take withdrawals could be an expensive mistake. Luckily there is an easy fix.

Waiting for the government to push you to take withdrawals could be an expensive mistake. Luckily there is an easy fix. Vishesh Raisinghani Thu, July 16, 2026 at 12:15 PM GMT+2 5 min read JPM Photo by Photo-Vista.

de / Shutterstock Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Most retirement planning hinges on the assumption that you'll start spending from your nest egg. But study after study seems to suggest that retirees are actually reluctant to spend their savings.

Researchers David Blanchett and Michael Finke (1) found that a typical 65-year-old retired couple withdraws just 2. 1% of their portfolio each year. That's significantly lower than the standard 4% rule .

This aversion to spending hard-earned savings was also reflected in a JP Morgan study (2) which found that roughly 33% of retirees took little or no withdrawals from their retirement plans until Required Minimum Distribution (RMD) rules compelled them to. Must Read Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one JPMorgan still sees gold hitting $5,000/oz by Q4 — and savvy investors are protecting their wealth with a tax-advantaged Gold IRA. Learn more with a free guide from Priority Gold The tax breaks in Trump's 'big beautiful bill' expire after 2028 — and experts say most people won't act in time.

What to do before the window closes Simply put, after decades of delayed gratification and careful accumulation, it's difficult for most retirees to start taking withdrawals. If you're worried about running out of cash in retirement, this might seem like an obvious move. But in reality, it could be a missed opportunity.

Here's why. Two issues with RMDs In 2026, retirees are subject to RMDs at age 73, according to the IRS (3). Waiting until the government compels you to withdraw from your retirement savings could seem like a smart move, but it creates two problems.

First, it makes tax planning difficult. Compulsory withdrawals could push you into a higher tax bracket and there's not much you can do to offset this issue. Depending on your income and wealth, a sizable portion of your retirement savings could be snapped away by the tax authorities.

Second, RMDs create cash flows when you potentially have less use for it. Spending tends to gradually decline in retirement, according to JP Morgan's analysis (2) of client data. You're simply healthier and more active in your 60s, which means you need more cash during this initial 'go-go' phase of your retirement.

By your mid-70s, you're potentially spending less but withdrawing more because of RMDs. Fortunately, this is a relatively easy problem to solve with one simple trick. Story Continues Read More: Millionaires under 43 hold only 25% of their wealth in stocks.

Here's where their money is actually going A simple trick to solve Required minimum distributions — the mandatory annual withdrawals the IRS imposes on traditional IRAs, 401(k)s, 403(b)s and similar accounts once you reach age 73 — have one glaring exception: the Roth IRA. Roth IRA owners are never required to take a distribution during their lifetime, according to Vanguard (4). The money can sit and compound tax-free for as long as you live.

That's the trick most Americans miss: converting a slice of your traditional IRA or 401(k) into a Roth IRA during your 60s, what's known as a Roth conversion , can permanently shrink the forced withdrawals waiting for you down the road. While converting, you can give your contributions an added boost with Acorns 3% IRA match. The app is designed to automatically invest spare change from your everyday purchases into a diversified portfolio of ETFs managed by experts at leading investment firms like Vanguard and BlackRock.

These investments can be held inside retirement accounts on the Acorns platform. Sign up today and get a $20 bonus investment . Alternatively, you could also consider a Gold IRA through Priority Gold .

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold , making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainty. To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases. If your nest egg is relatively sizable and you're worried about making the right move, you can hire a professional advisor to help you navigate some of these strategies.

If you have a portfolio of $250,000 or more, platforms like WiserAdvisor can connect you with vetted professionals who specialize in this kind of planning. Simply answer a few questions about your savings, retirement timeline and overall investment portfolio. From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.

You can then schedule no-obligation consultations with your matches to determine who is the best fit for your long-term goals. WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.

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Wiley Online Library ( 1 ); JPMorgan Chase ( 2 ); Internal Revenue Service ( 3 ); Vanguard ( 4 ) This article provides information only and should not be construed as advice. It is provided without warranty of any kind.