It might sound dramatic, but it’s true — more Americans fear going broke in retirement than dying. According to a recent Allianz Life study, nearly two-thirds of Americans say they’re more scared of outliving their savings than they are of death. For Gen Xers, that number jumps to a whopping 70%. And who can blame them? Between inflation, market ups and downs, and sky-high healthcare costs, retirement can feel more like a cliff than a cozy finish line.
But here’s the good news: retirement anxiety is real — but manageable. You don’t have to be a Wall Street wizard to plan a solid financial future. You just need a roadmap, the right tools, and a bit of honest guidance. Let’s walk through how to turn panic into peace.
More Americans Fear Going Broke Than Death
| Topic | Details |
|---|---|
| Main Fear | 63% of Americans fear outliving savings more than death (Allianz Life) |
| Top Concerned Group | Gen X (70% say they worry about going broke in retirement) |
| Primary Causes | Inflation, healthcare costs, market volatility, Social Security uncertainty |
| Suggested Solutions | Financial planning, diversified income, healthcare budgeting, emotional prep |
| Resource Link | Investopedia |
Fear of running out of money in retirement is real, but it doesn’t have to control your life. With smart planning, a diversified income approach, and attention to your emotional needs, you can step into retirement with confidence instead of dread. This journey starts today — not tomorrow, not “someday.” You got this.
Why Are Americans So Anxious About Retirement?
The Big Picture
Let’s be honest — retirement ain’t what it used to be. Pensions are mostly a thing of the past, Social Security is on shaky legs, and everything from rent to eggs has shot up in price.
The fear of running out of money before the end of your life is deeply rooted in uncertainty — and that uncertainty can cause serious stress.
“It’s not about greed. It’s about security. Folks want to know they can retire without living off ramen noodles.”
A Practical Guide to Beating Retirement Anxiety
You don’t need to be rich to retire with peace of mind. You just need a solid plan. Here’s how to start:
- Build a Realistic Financial Plan: Sit down and map out your numbers. Include everything:
- Expected Social Security benefits (check here)
- Retirement savings (401(k), IRA, Roth, pension)
- Monthly expenses (housing, food, utilities, fun)
- Healthcare and insurance costs
- Use tools like the Monte Carlo simulation to understand how different market conditions could impact your retirement funds. You don’t need to be a math whiz — your advisor or tools like Fidelity’s planner can do the number-crunching.
- Diversify Your Income Streams:
- Don’t Just Rely on Social Security: It’s important, sure, but it likely won’t be enough. Here’s how to spread your income sources:
- Part-time work or consulting
- Rental income
- Annuities (steady monthly payouts)
- Dividend-paying investments
- Side hustle like tutoring, pet-sitting, or crafting
- Don’t Just Rely on Social Security: It’s important, sure, but it likely won’t be enough. Here’s how to spread your income sources:
- A mix of income helps protect you from downturns in any one area.
- Plan Ahead for Healthcare Costs: Healthcare is the biggest wild card in retirement. According to Fidelity, the average retired couple in 2023 may need around $315,000 just for healthcare expenses.
Start planning now:
- Open and fund a Health Savings Account (HSA) while you’re still working
- Learn about Medicare Parts A, B, D and consider Medigap or Advantage plans
- Budget for long-term care needs
- Get Emotionally Ready to Retire: We talk a lot about money, but retirement anxiety isn’t just about dollars. It’s about identity, routine, and purpose.
- Here’s how to prepare mentally:
- Create a post-retirement routine
- Join a community group or club
- Volunteer or mentor younger folks
- Pick up a hobby (gardening, painting, fishing, you name it)
- Here’s how to prepare mentally:
“Retirement isn’t an end. It’s a new beginning. But you gotta plan for both your wallet and your well-being.”
- Talk to a Professional: A certified financial planner (CFP) can help you:
- Create a custom strategy
- Navigate taxes, investments, and withdrawals
- Adjust for inflation or market downturns
- And guess what? It’s not just for rich folks. Many advisors offer hourly or flat-rate plans, or you can use platforms like XY Planning Network to find one who fits your budget.
Bonus Tips to Sleep Better at Night
- Start small: Save a little now instead of waiting for “the perfect time”
- Set goals: Not just financial ones, but lifestyle ones too
- Stay informed: Read up, but don’t fall into doomsday rabbit holes
- Don’t compare: Your retirement path is your own. Social media lies.
FAQs
Q: Why do so many people fear going broke in retirement?
Because the cost of living keeps rising while traditional income sources like pensions have declined. People worry about losing independence and becoming a burden.
Q: How much money do I need to retire?
It depends on your lifestyle. A rule of thumb is 70–80% of your pre-retirement income annually for 25–30 years. Use online calculators to personalize your plan.
Q: Can I still retire if I haven’t saved enough?
Yes, but you may need to adjust your plan. Consider part-time work, downsizing, or pushing retirement a few years later.
Q: What’s the best age to retire?
That’s personal. Social Security allows early benefits at 62, full benefits around 66–67, and delayed benefits up to 70.
Q: How can I make my money last longer?
Diversify your investments, draw down from tax-advantaged accounts strategically, and reduce fixed expenses where possible.
