More Americans Fear Retirement Bankruptcy Than Death — Shocking Survey Results Revealed
More Americans Fear Retirement Bankruptcy: Imagine being more afraid of running out of money than of dying itself. Sounds shocking, right? Well, that’s exactly what’s happening. According to a recent survey by Allianz Life, 64% of Americans fear running out of money in retirement more than death. And it’s not just one generation — this fear stretches across Gen X, millennials, and baby boomers.
More Americans Fear Retirement Bankruptcy
| Key Point | Data/Details | Source |
|---|---|---|
| Americans fearing running out of money more than death | 64% overall, 70% Gen X, 66% millennials, 61% boomers | Allianz Life |
| Top concern: Inflation | 54% cite it as a major worry | NBC New York |
| Concern about Social Security | 43% worry about its reliability | SlidePlayer |
| Lack of professional advice | Only 23% consulted a financial advisor | Allianz Life |
| Current Vanguard S&P 500 ETF (VOO) price | $506.11 | Business Insider |
Fear of retirement bankruptcy is very real — and it’s growing. Inflation, uncertainty about Social Security, high taxes, and inadequate savings are fueling this anxiety. But knowledge is power. By saving early, diversifying investments, budgeting wisely, and getting expert advice, you can build a secure financial future and retire without fear.
Why Are Americans So Worried About Retirement?
Inflation is Eating Away Savings
Inflation isn’t just a scary word economists use. It means your money buys less over time. According to the survey, 54% of Americans are worried inflation will make their savings worth less when they retire. (NBC New York)
Example: Imagine you saved $100,000. If inflation runs at 3% per year, in 10 years, that $100,000 will only buy about $74,000 worth of goods!
Fear Over Social Security
Social Security is meant to be a safety net. However, 43% of Americans worry it won’t be enough to support them. (SlidePlayer)
Fact: The Social Security Administration’s trustees project that the trust funds may be depleted by 2034 if no action is taken.
Taxes Are a Big Concern
Taxes don’t disappear when you retire. Many people fear that higher taxes will eat into their savings. In fact, 43% are specifically concerned about this.
Tip: Setting up tax-advantaged accounts like Roth IRAs can help shelter some of your savings from future taxes.
Americans Are Not Saving Enough
Despite all these fears, many Americans are struggling to save.
- 63% blame day-to-day expenses.
- 40% cite credit card debt.
- 35% mention housing costs.
More Americans Fear Retirement Bankruptcy: How to Make Sure You Don’t Run Out of Money in Retirement?
Step 1: Start Saving Early (and often)
Even small amounts add up over time. Thanks to compound interest, saving $200 a month starting at age 25 could leave you with over $300,000 by retirement.
Step 2: Maximize Employer-Sponsored Retirement Plans
If your employer offers a 401(k) match, grab it! It’s free money. Try to contribute enough to get the full match.
Step 3: Diversify Your Investments
Don’t put all your eggs in one basket. Stocks, bonds, and other assets should all play a role in your portfolio.
Example: The Vanguard S&P 500 ETF (VOO) is a solid option for low-cost, diversified exposure to the stock market.
Step 4: Create a Retirement Budget
Know what you’ll need to live comfortably. Include:
- Housing
- Healthcare
- Food
- Entertainment
- Travel
Plan for unexpected expenses too!
Step 5: Consult a Financial Advisor
Only 23% of Americans talk to a financial professional about their retirement fears.
An expert can help you make a custom plan based on your goals, needs, and risk tolerance.
FAQs on More Americans Fear Retirement Bankruptcy
Why do people fear running out of money more than death?
Because running out of money can lead to homelessness, lack of healthcare, and an inability to meet basic needs—all while still alive.
How much should I save for retirement?
Experts often recommend saving enough to replace 70-90% of your pre-retirement income.
Is Social Security enough to live on in retirement?
In most cases, no. It’s designed to replace about 40% of your pre-retirement earnings.
What happens if I run out of money after retiring?
You may have to rely on family, government aid, or drastically cut your living expenses.
How can I catch up if I started saving late?
Increase your savings rate, delay retirement, and optimize investment returns. Catch-up contributions to retirement plans after age 50 can help too.
