Most Americans Now Fear Poverty in Retirement More Than Death

Americans’ concerns about high inflation and the state of the Social Security program, among other worries, are pushing up the level of financial anxiety across the generations.

This is the conclusion drawn in a new survey report published by Allianz Life. Strikingly, some 63% of survey respondents this year say they worry more about running out of money than about death and dying — up from 57% in a 2022 edition of the survey.

Gen Xers are the most likely to say this, according to the survey, with 71% reporting they are more worried about running out of money than death. This compares to 64% of millennials and 53% of boomers.

Kelly LaVigne, vice president of consumer insights at Allianz Life, said the results are eye-opening, and it’s understandable that running out of money in retirement is a scary thought.

“That’s why it is so important to have a thorough financial strategy for retirement,” LaVigne said.

What’s Driving the Worry?

Recent inflation has heightened this feeling, according to the survey, with “high inflation” cited by 43% of survey respondents as being among the most pressing concerns contributing to worry about running out of money.

Black and African American respondents (52%) and Asian/Asian American (51%) respondents were more likely to say inflation contributes to their worry about running out of money than white (41%) or Hispanic (39%) respondents.

There were also differences by generation, with baby boomers (48%) being more likely than millennials (44%) or Gen Xers (39%) to say high inflation contributes to their concern about running out of money.

Concern about inflation was followed by “Social Security not providing as much financial support as it should” (24%) and “high taxes” (22%). Gen Xers are more concerned than other generations that not saving as much as they should for retirement would contribute to them running out of money.

Americans Want Professional Guidance

The good news in the survey results is that many Americans say there are some ways they could address their concern about running out of money.

Some of the most prevalent are increasing retirement savings now (41%), reducing current spending in order to save more (38%) and directing a portion of retirement savings towards products that provide lifetime income payments (35%).

Other Americans expect to work longer and retire later (35%), though this can be difficult in practice, while others will aim to invest in a manner that provides a balance of market protection and growth (26%).

To help manage these and other concerns, the vast majority of Americans say they would like to talk with a financial professional about maximizing return on their investments (88%) and maximizing Social Security benefits in retirement (88%). The same is true when it comes to investing in a financial product that provides lifetime income (88%).

Credit: Shutterstock