Americans Fear Exhausting Savings Before Death
A greater number of Americans are more concerned of running out of money in retirement than death, finds a new study by the Allianz Center for the Future of Retirement.
The 2026 Annual Retirement Study found that 67% of Americans worry about exhausting their retirement savings more than death, marking a 10% increase from 2022. Those in Generation X were likelier to worry about this more so than Millennials or Boomers, at 73% compared to 69% and 59%, respectively.
High inflation, healthcare costs, and market volatility were the top concerns related to this fear, along with potential Social Security insolvency, possible health emergencies, and high taxes.
The behavioral impacts of economic volatility are severe, as 50% of respondents say they immediately check their retirement accounts after a market decline. Another 34% will withdraw investment funds to curb additional loss.
“Americans are well aware that preparing to fund a decades long retirement is a big undertaking,” says Kelly LaVigne, vice president of consumer insights at Allianz Life. “Rising costs and ongoing economic uncertainty are making many people wonder if their savings will run out. Setting money aside is an important step but Americans also need a strategy to turn those assets into a reliable income stream that can last their lifetime.”
Lack of planning drives concerns
An absence of financial planning could be pushing these fears, states Allianz Life. Close to half (48%) of Americans say they have not organized a financial plan, with Gen Xers the likeliest age group to not have a plan of action.
According to the findings, the majority of Americans aren’t sure how to start planning for retirement outside of contributing to a retirement account; how to factor Social Security into their retirement plan; how taxes in retirement will compare to their current tax situation; and what their healthcare costs will be in retirement and how to pay for it.
This lack of knowledge could be driving some of these concerns. Studies show that participants with access to financial guidance are likelier to have a financial plan, feel more confident in their retirement goals, and contribute more to their retirement accounts.
“Not having a strategy for retirement can lead to Americans allowing fear to take over their financial future,” LaVigne says. “Creating a written plan with the help of a financial professional can help Americans address knowledge gaps, understand risks and incorporate risk management solutions to provide more confidence that their income can last throughout retirement.”
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news.