Mortal fears about retirement: Americans need more time, money

Nearly two-thirds of Americans are worried more about saving enough money for retirement than they are about dying.

The combination of longer lifespans, high inflation, concerns about Social Security, and market volatility is leading to the concerns illustrated in a new survey. Specifically, the Allianz Center for the Future of Retirement survey found that 64% of respondents “worry more about running out of money than death.”

Allianz surveyed 1,000 adults with at least $150,000 in investable assets or a certain level of annual household income ($50,000 single or $75,000 married/partnered).

“With Americans living longer in retirement and facing risks like market volatility, creating a financial strategy so that your money lasts your lifetime is a daunting task,” Kelly LaVigne, vice president of consumer insights for Allianz Life, said in a news release. “A financial professional can design a strategy to help ease your worries about running out of money.”

Just 23% of respondents said they have talked to their financial professional about the concern that they will run out of money. A similar survey in late 2023 found that a similar percentage (26%) were working with a financial professional, even though 73% said they believed that a “solid financial plan would bring me happiness.”

Respondents to the Allianz survey were asked about the factors feeding their fears. They cited inflation (54%), Social Security not providing enough financial support (43%), and high taxes (43%) as top drivers of concern.

The most common financial responsibilities keeping respondents from saving for retirement were day-to-day necessities (63%), credit card debt (40%), and housing debt from a mortgage or rent (35%).

Thirty-nine percent listed working longer and retiring later as a top-three solution, just behind finding ways to increase retirement saving (44%) and reducing current spending (41%).

Resources

• AICPA members have access to a Personal Finance Scorecard.
• Tax-efficient draw-down strategies chart.
• Related calculator: Retirement Income Projector and Gap Analysis.
• Related calculator: Cost of health care in retirement.

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.