If you think saving for retirement is hard, wait until you start thinking about how to make the money last.
It's a challenge that policymakers are focusing on more intently, especially since features like automatic enrollment are encouraging people to save more.
Some 55 percent of workers in a 2014 survey by the Employee Benefit Research Institute were at least somewhat confident about having enough money for retirement, including 18 percent who were highly confident. That's an improvement from 2013, when just 13 percent were highly confident their nest egg was big enough. But many of those investors don't seem to have a handle on how much money they can and should draw down after they stop working.
"So much of the attention in 401(k) policy has been in getting people to save. Now some people have done that, and now the issue is well, what do they do with the money when they retire?" said Richard Johnson, a senior fellow and director of the program on retirement policy at the Urban Institute.
People seem to be either shortsighted or overcautious with their savings, Johnson added, but either way, they are not making optimal use of the money. "The traditional fear is that people will outlive their assets. But when we look at the data, the opposite is happening. People are so afraid they will run out of money that they don't spend down their 401(k) savings."