For Most Americans, Going Broke in Retirement Is a Bigger Fear Than Death: Survey
The Allianz Center for the Future of Retirement has published its annual retirement study, finding yet again that a solid majority of Americans say they worry more about running out of money in retirement than they worry about their mortality.
Specifically, 64% of survey respondents this year said they worry more about financial destitution in retirement than death. Despite the concern, 62% say they are not saving as much for retirement as they would like, while 54% say inflation contributes to their fear of running out of money.
The most common factor keeping Americans from saving for retirement is expenses for day-to-day necessities taking priority (63%). This was followed by credit card debt (40%) and housing debt from a mortgage or rent (35%).
“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 at Allianz Life, said in a statement. “A strong retirement strategy will go beyond a dollar amount in the bank — it will also address how you will create a reliable income stream from your assets.
Many factors and economic pressures contribute to the general fear of running out of money during life after work, the survey results suggest. Behind inflation, the biggest fears include Social Security not providing as much financial support as people need (43%) and high taxes (43%).
As LaVigne pointed out, few Americans have addressed this fear with their financial professional, and that seems to be affecting their fear levels — as does a lack of guaranteed income sourced via pensions or annuities.
“A financial professional can design a strategy to help ease your worries about running out of money,” she said.
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