The prospect of going broke in retirement really scares Americans. So much so, in fact, that nearly two in three say they worry more about running out of money than death, according to the 2024 Annual Retirement Study from Allianz Life.
Gen Xers are the most likely to say this, with a startling 71% more worried about running out of money than death.
Concerns about inflation, Social Security and taxes contribute to this fear, where 63% say they worry more about going broke than dying, up from 57% in 2022. Gen Xers are the most likely to say this, with a startling 71% more worried about running out of money than death, compared to 64% of Millennials and 53% of Boomers.
“Running out of money in retirement is a scary thought,” said Kelly LaVigne, VP of Consumer Insights, Allianz Life. “That’s why it is so important to have a thorough financial strategy for retirement. A financial professional can help you figure out what strategies will work for you and write it down. A written financial plan can help you ensure you are prepared with your finances so your money can last your lifetime and help ease the concerns you have that you will run out of money.”
Recent inflation has heightened this concern, as high inflation (43%) is the most common concern cited by respondents as contributing to worry about running out of money. Black/African American (52%) and Asian/Asian American (51%) respondents were more likely to say this than white (41%) or Hispanic (39%) respondents. Boomers (48%) were more likely than Millennials (44%) or Gen Xers (39%) to say high inflation contributes to their concern about running out of money.
Social Security not providing as much financial support as it should (24%) and high taxes (22%) were the other key factors fueling this worry. Gen Xers are more concerned than other generations that not saving as much as they should for retirement in defined contribution plans would contribute to them running out of money.
Americans say there are some ways they could address their concerns. Responses ranked in their top three solutions were:
• Increase retirement savings (41%)
• Reduce current spending and save more (38%)
• Put portion of retirement savings in a product that provides lifetime income payments (35%)
• Work longer and retire later (35%)
• Put portion of retirement savings in a product that provides a balance of market protection and growth (26%)
Allianz Life conducted the 2024 Annual Retirement Study online survey in February and March 2024 with a nationally representative sample of 1,000 individuals age 25+ in the contiguous U.S. with an annual household income of $50k+ (single)/$75k+ (married/partnered) OR investable assets of $150k+. The study included an oversample of respondents who identified as Black/African American (416 responses); Hispanic (398 responses); Asian/Asian American (366 responses).
SEE ALSO:
• The 2024 Game Plan for In-Plan Annuities
• Can Americans Living to 100 Afford a 30-Year Retirement?