Retirees fear running out of money. Many are spending too little instead

Lordhenrivoton | E+ | Getty Images When people think of how much to save for retirement — and, subsequently, how to spend that money wisely in older age — many worry about the risk of running out of money early. They fear the possibility of overspending. But there's another less-appreciated danger, too, according to financial experts: The risk of underspending one's nest egg. "Overspending is risky. But underspending is risky too," said Zach Teutsch, a member of CNBC's Financial Advisor Council and founder of Values Added Financial in Washington. Data shows that it happens to many retirees. About a third of retirees still have 100% or more of their initial savings remaining by their mid-80s, according to a recent study by the Employee Benefit Research Institute, a nonpartisan research group. "When you see so many people into their 80s still at 100%, you see people who are being way too conservative [with their spending]," said Craig Copeland, the director of wealth benefits research at EBRI.