Americans Fear Running Out of Money in Retirement More Than Death Itself

Financial Anxiety Eclipses Mortality Concerns Among Americans

Americans harbor a fear that surpasses even the universal dread of mortality itself: running out of money during retirement. A striking new survey from the Allianz Center for the Future of Retirement reveals that 67% of Americans worry more about depleting their financial resources than they do about death. This finding underscores a profound shift in how people perceive the greatest threats to their well-being in later life.

The survey, released in April, presented Americans with a stark choice between two fundamental worries: death itself or running out of money. Across five consecutive annual surveys, financial depletion has consistently emerged as the dominant concern, and this year’s margin represents the highest disparity ever recorded. The research reached 1,000 adults ages 25 and over with household incomes of at least $50,000 or investable assets of at least $150,000.

“It’s running out of money,” said Kelly LaVigne, vice president of consumer insights at Allianz, speaking to USA TODAY in April. “It’s not being able to afford healthcare. It’s not being able to afford long-term care.”

Kelly LaVigne, vice president of consumer insights at Allianz, articulated the specific dimensions of this anxiety. The fear extends beyond simple numbers in a bank account to encompass the tangible necessities of aging: healthcare access, long-term care facilities, and the basic ability to maintain dignity and independence in later years.

Multiple Economic Forces Converge to Amplify Retirement Anxiety

Several economic and socioeconomic factors combine to intensify Americans’ concerns about outliving their financial resources. People are living longer than previous generations, which means retirement savings must stretch across more years. Inflation runs high, eroding purchasing power and making future planning more difficult. Healthcare and long-term care costs continue their relentless upward climb, while fewer workers retire with traditional pensions that provide guaranteed income streams.

These converging forces dramatically inflate the expectations for how much money an ordinary American needs to fund even a modest retirement. The psychological impact of these elevated figures can prove overwhelming, particularly when sensational headlines tout astronomical savings requirements. David John, a senior strategic policy adviser at the AARP Public Policy Institute, addressed this phenomenon in an April interview.

“You start to see these stories: In order to have a comfortable retirement, you have to have $1.4 million,” said David John. “People see big numbers. And what big numbers may or may not do is actually apply to them. But what it does is scare people.”

The gap between realistic retirement needs and headline-grabbing figures creates confusion and anxiety. While not every American requires seven-figure savings to retire comfortably, the proliferation of such statistics generates widespread fear that many workers cannot meet these seemingly insurmountable thresholds.

Top Retirement Fears Center on Money and Security

A more comprehensive retirement study from the Transamerica Center for Retirement Studies, also released in April, ranked America’s greatest retirement fears. The top three concerns all revolve around financial security and the ability to maintain quality of life. Declining health requiring long-term care topped the list, followed closely by Social Security cuts and outliving savings and investments.

Each of these fears connects directly to money and the ability to afford essential services during retirement. Long-term care represents one of the most significant potential expenses facing retirees, with costs rising steadily year after year. Social Security concerns reflect widespread uncertainty about whether this foundational program will maintain current benefit levels for future retirees. The fear of outliving savings encompasses the nightmare scenario of depletion: having biological life extend beyond financial resources.

Hard Data Validates Americans’ Financial Concerns

Concrete evidence supports the validity of these widespread retirement fears. Long-term care costs continue their upward trajectory, placing increasing strain on retirement budgets. These expenses represent one of the most unpredictable and potentially catastrophic costs that retirees face, as the need for such care often arrives suddenly and persists for extended periods.

Social Security faces documented financial challenges that lend credibility to concerns about future benefit cuts. The program confronts a projected shortfall as soon as the early 2030s, which could necessitate benefit reductions unless Congress implements reforms. This looming deadline adds urgency to retirement planning for millions of Americans who expect Social Security to form a crucial component of their retirement income.

The Vanishing Safety Net of Traditional Pensions

One of the most significant shifts in retirement security involves the decline of traditional pension plans. Previous generations could often rely on employer-provided pensions that guaranteed monthly income for life, creating a reliable foundation for retirement planning. Today’s workers increasingly face retirement with only defined contribution plans like 401(k) accounts, which shift investment risk and longevity risk entirely onto individuals.

This transformation fundamentally alters the retirement landscape. Workers must now estimate how long they will live, project investment returns, calculate sustainable withdrawal rates, and manage their own nest eggs without the security of guaranteed lifetime income. The psychological burden of managing these complex variables contributes significantly to retirement anxiety, particularly for those without financial expertise.

Financial Strain Defines Contemporary Retirement Planning

The breadth and depth of financial concerns affecting retirement planning reflect broader economic pressures facing American households. Rising costs across multiple categories-housing, healthcare, education, and basic living expenses-squeeze household budgets and limit the ability to save for retirement. Meanwhile, wage growth often fails to keep pace with inflation, further constraining savings capacity.

These financial strains compound over time, creating a cycle where inadequate savings generate anxiety, which in turn makes rational retirement planning more difficult. The stress of financial insecurity affects not just retirement readiness but also current quality of life, as workers sacrifice present needs in often-futile attempts to build adequate retirement reserves.

The survey findings illuminate a fundamental challenge facing American society: the need for comprehensive solutions that address retirement security through multiple channels. Individual savings alone cannot solve a problem rooted in systemic economic shifts, rising costs, and vanishing traditional retirement supports. Policymakers, employers, and financial institutions all share responsibility for developing approaches that restore confidence in Americans’ ability to retire with dignity and financial security.