Most Americans Fear Outliving Retirement Savings, Surveys Find

A growing number of Americans are more concerned about outliving their retirement savings than dying, according to multiple recent surveys.

Allianz Life, an American life insurance company, found through a survey that 64% of Americans worry more about running out of money than about death itself. Concerns were largely driven by high inflation, inadequate Social Security support, and rising taxes. The anxiety was most pronounced among Gen Xers, though millennials and baby boomers also expressed significant concern. The survey polled 1,000 individuals online between January and February.

Young people concerned | Source: Freepik

Similarly, an Employee Benefit Research Institute (EBRI) study of over 2,700 individuals found that while most retirees are able to spend within reason, more than half admit to spending less out of fear they might exhaust their resources. A separate survey conducted by Northwestern Mutual, another American financial security company, reported that 51% of Americans believe it is “somewhat or very likely” they will outlive their savings. That survey, conducted in January, included 4,626 U.S. adults.

New market turbulence sparked by tariff policies and leadership changes at the Social Security Administration have added to retirement confidence challenges, experts noted.

Experts recommend several strategies to mitigate the fear of outliving savings. David Blanchett, head of retirement research at PGIM DC Solutions, advises delaying Social Security benefits up to age 70 to maximize payouts and considering simple lifetime income annuities. “Unless you do those things, you just can’t get rid of that fear of outliving your resources,” Blanchett said.

A couple looking at reports | Source: Freepik

Despite growing interest, annuity uptake remains low, EBRI's Craig Copeland noted.

Financial planning is critical, experts emphasize. “This is something that you should not plan on doing on your own,” said Kelly LaVigne of Allianz Life. Kyle Menke of Menke Financial added that planning for retirement requires careful consideration of factors like market returns, inflation, and healthcare costs.