You’d think the fear of dying would be at the top of the list of things people are afraid of, but it turns out a lot of Americans are able to brush that one off. But the thought of going broke? Nothing is scarier than that to the majority of Americans, according to new research.
The 2025 Annual Retirement Study from Allianz Life was released this week, revealing that 64% of people worry more about running out of money in retirement than death. After surveying 1,000 U.S. adults 25 and older who make at least $50-thousand a year, the study finds:
- For more than half (54%) the biggest reason for that fear is high inflation.
- High taxes (43%) and concern that Social Security payouts won’t be enough financial support (43%) are also adding to those concerns.
- Worries over running out of money aren’t limited to one age group, but it’s higher for Gen X (70%), who are getting closer to retirement, and millennials (66%) than boomers (61%), even though many of them have already retired.
- So, what are Americans doing about their anxiety over being broke in their golden years? Only 23% have talked with a financial professional about their worries.
- But respondents say they’re trying to address their fear by increasing retirement savings (44%), spending less so they can save more (41%) and working longer to retire later (39%).
- Nearly two-thirds (62%) admit they’re not currently saving as much for retirement as they’d like.
- Day-to-day necessities, credit card debt and housing debt are the top things keeping them from saving more.
“With Americans living longer in retirement and facing risks like market volatility, creating a financial strategy so that your money lasts your lifetime is a daunting task,” says Kelly LaVigne, VP of consumer insights at Allianz Life. “You really want to make sure that you're working with a professional to help you get through the times like this, where there's a lot of uncertainty.”
Source: CBS News