2 in 3 Americans fear running out of money more than death

MINNEAPOLIS – April 9, 2024  – Nearly two in three Americans say they worry more about running out of money than death with concerns about inflation, Social Security and taxes contributing to the fear, according to the 2024 Annual Retirement Study from Allianz Life.

 

The worry of running out of money has increased in recent years. In 2024, 63% say they worry more about running out of money than death, up from 57% in 2022. Gen Xers are the most likely to say this with 71% more worried about running out of money than death, compared to 64% of millennials and 53% of boomers.

 

Recent inflation has heightened this feeling. High inflation (43%) is the most common concern contributing to worry about running out of money. Black/African American (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. 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.

 

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.

 

“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.”

 

Americans say there are some ways they could address their concern about running out of money. 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%)

To help manage this concerns, Americans would like to talk with a financial professional about maximizing return on their investments (88%), maximizing Social Security benefits in retirement (88%), and investing in a financial product that provides lifetime income (88%).