Retirement savings have depleted faster for those who took a lump sum from their accounts, reports new research from MetLife.
According to the organization’s 2026 Paycheck or Pot of Gold Study, retirees who withdrew a large sum directly from their retirement savings report greater financial strain, with 20% depleting withdrawals in four and a half years after retiring. This is down from five years in 2022 and five and a half years in 2017.
Of those who have lump sum money remaining, 51% report concerns over exhausting those savings. These retirees estimate that, on average, they have 11 years’ worth of money left. For savers with $200,000 or more, retirees anticipate an average duration of 14 years.
Healthcare, longevity concerns intensify
The findings come as pre-retirees report feeling increasingly anxious with rising healthcare costs and longevity.
MetLife’s study found that among those ages 50 to 75, who are within five years of retirement and are currently enrolled in an employer’s defined contribution (DC) plan, more than half (58%) are concerned about draining their retirement savings.
Over half (51%) of retirees with remaining money in their DC account also share this concern—a severe rise from 30% less than a decade ago, MetLife reports.
“America has reached critical juncture,” said Roberta Rafaloff, vice president and head of institutional income annuities at MetLife. “Economic volatility, rising costs and increasing longevity are reshaping the retirement landscape. Even diligent savers are finding their retirement outlook disrupted. Without reliable income streams to anchor their finances, retirees face an elevated risk of outliving their savings.”
As savers navigate high costs and economic pressures, they’re trying to grasp how past savings strategies have failed to keep pace with today’s economic environment, MetLife reports. While the average retiree will spend 25 to 30 years in retirement, pre-retirees now expect their savings to last just 15 years after they leave the workforce. This is down from 19 years four years ago, the study finds.
Further, 62% of pre-retirees and 59% of retirees admitted to underestimating the amount needed to save for retirement while overestimating how long their savings would last (61% and 57%, respectively).
As a result, a greater number of retirees are seeking guidance from professionals to help manage savings. Almost all (95%) pre-retirees surveyed today say they look for guidance, up from 86% in 2022. Ninety percent of retirees also seek advice now, an increase from 81% four years ago.
Close to half of pre-retirees and retirees also say they have reduced their spending to avoid losing savings.
Almost all (98%) of retirees believe another layer of retirement income could have stopped them from completely exhausting their savings, and most describe a monthly retirement “paycheck” as “very important” or “absolutely essential” to helping them pay their bills.
MetLife also reports that retirees with annuities say they feel financially secure (94%) and have predictable budgets (92%). Fifty-one percent of retirees in this group worry about outliving savings.
When asked about their decision to take a lump sum, 46% of retirees wish they had selected a guaranteed lifetime income option instead—a sharp rise from 15% in 2017 and 13% in 2022.
MetLife’s study was conducted by The Harris Poll and included 1,007 adults ages 50 to 75 who are retired and had a balance of $25,000 or more in a DC plan when they retired and withdrew all or a portion of that balance or receive monthly annuity payments of $500 or more. It also included 1,015 adults ages 50 to 75 who are employed full-time, planning to retire within five years, are currently enrolled in an employer’s defined contribution plan, and who know the type of defined contribution plan they have through their employer.