Conquering FORO: The Fear of Running Out in Retirement
There’s a fear that follows people into retirement that no spreadsheet can quite shake.
It has a name now: FORO, the fear of running out.
The constant hum of will my money last? The flinch every time you swipe the card. The holiday you keep putting off. The renovation that stays in the “one day” pile. The lunch with the grandkids, you don’t quite enjoy because you’re mentally counting the cost.
You worked for decades to earn this freedom. FORO is the thing that quietly stops you from enjoying it.
What is FORO?
FORO isn’t a money problem. It’s a confidence problem.
It happens when smart, financially capable people stop earning a regular income for the first time in their lives. The wage stops. The savings start being drawn down instead of topped up. And the brain, which has spent decades wired to make and accumulate, suddenly has to learn how to use and enjoy.
That switch is hard. Even for people who’ve saved well. Even for people with a million in super. Even for people whose adviser has shown them the projections.
The cruel irony
The real risk in retirement isn’t running out of money. It’s running out of time. It’s having regrets about the things you didn’t do while you could.
Studies on retiree spending consistently show that retirees underspend their wealth, sometimes by a lot, because the fear of running out keeps them locked in saving mode long after they should have switched to using mode.
So the real cost of FORO usually isn’t financial. It’s the trip not taken. The renovation never started. The year off with the grandkids that became “maybe next year” until next year ran out.
How to conquer FORO
While you’ve still got the song in you, sing it.
FORO lives in the gap between “I think I’m okay” and “I know I’m okay.”
The antidote to FORO is to close that gap by working through these 5 steps with a financial adviser.
1. Get clear on what your life costs
Most retirees guess high. Run the actual numbers: what you spend, what you really need, what’s discretionary. Once you can see it, the fear gets smaller.
2. Know your safe-to-spend number
This is the figure that matters. Not your super balance. Not your net worth. The amount you can confidently spend each year without eating into the future.
3. Build a buffer for the things that keep you up at night
Market crashes. Aged care. Helping the kids. Each of these has a financial answer. Once they’re built into the plan, they stop feeling like cliffs you might fall off.
4. Re-imagine retirement
What are the five big things you want to do in the next five years? The lap of Australia in the caravan. Sailing the Croatian coast. Walking the Camino. Six weeks in Tuscany. Taking up pottery. The shed you’ve been promising yourself. Playing the Old Course at St Andrews. Buying the EV. Renovating the kitchen properly. Taking the grandkids to Japan.
5. Run the numbers
A financial adviser closes the gap between hope and reality, giving you the financial clarity and confidence to enjoy your retirement, knowing the numbers stack up.
No regrets retirement
You’re not guaranteed how long you’ll live. None of us are.
But you can plan to live with no regrets.
Plan well. Live large.
Centaur Financial Services is a Gold Coast financial planning practice helping professionals, retirees, business owners, and investors make confident wealth decisions. Based in Robina and serving clients across Australia, we’re proud to be one of Australia’s most awarded advice firms. We specialise in retirement planning and back it with institutional-grade investment capability.
This article is general information only. It does not take into account your personal objectives, financial situation or needs. Centaur Financial Services Pty Ltd is a Corporate Authorised Representative (CAR No. 342372) of Abundant Wealth Partners Pty Ltd, ABN 35 680 570 487, AFSL 564749. Please obtain personal advice before acting on any of this content.
