Being frugal in retirement may seem like a good thing. For many retirees, the “biggest hurdle is psychological rather than financial,” said U.S. News & World Report . It can be hard for these retirees to suddenly change their money mindset and pivot to spending the retirement savings they worked so hard to accumulate. The risk of overspending in retirement is obvious; the risk of underspending may be less so. Maybe you slow down your spending after a big year of travel, for example, or a market downturn.