Americans are increasingly worried about running out of money in retirement, even more so than the fear of dying, according to recent surveys. A study by Allianz Life found that 64% of Americans have a greater concern about depleting their savings than facing death itself. This anxiety is felt across generations, with Gen Xers (70%) being the most worried, followed by millennials (66%) and baby boomers (61%).
The primary reasons for this fear include high inflation (54%), doubts about the adequacy of Social Security benefits (43%), and high taxes (43%). Many Americans are grappling with the challenge of saving enough for a long retirement while facing risks such as market volatility. Despite these concerns, only 23% of respondents said they had discussed the issue of outliving their savings with a financial professional, down from 28% the previous year.
Retirement concerns surpass death fears
To manage their fears, many are considering practical adjustments such as increasing retirement savings (44%), reducing current spending (41%), and working longer to delay retirement (39%). However, a majority (62%) expressed concern that they are not saving as much as they would like due to everyday financial burdens like living expenses (63%), credit card debt (40%), and housing costs (35%).
Experts suggest creating a comprehensive financial strategy that outlines goals, steps to achieve them, and contingencies for risks such as inflation and market volatility. They also recommend seeking professional financial advice to boost retirement confidence and explore options, such as annuities, that provide a guaranteed income for life. As Americans continue to worry about outliving their savings, it becomes increasingly important to take proactive steps in planning for a secure financial future in retirement.
This may involve a combination of saving more, paying down debt, and seeking guidance from financial professionals to develop a robust retirement strategy.
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