It is often asserted that Australians are too conservative in retirement, not spending as much as they could and still having substantial retirement savings when they die. While there may be an element of truth in such assertions, at least for some retirees, it is likely that things are a bit more complex. However, I have faith in the ability of many Australians, including retirees, to make decisions that are more or less in their best interest. The evidence on underspending is a bit patchy, relying mostly on Age Pension data, SMSF administrator records and longitudinal data from a few...