Imagine you’ve worked your entire life to save for a happy retirement, and now you wonder if that day will ever come. That's how a lot of people have been feeling recently, with more people worried about running out of money in retirement than dying.
Nearly two in three Americans (64%) are more worried about going broke in retirement than dying, according to the 2025 Annual Retirement Study from the Allianz Center for the Future of Retirement.
The study highlights that many factors and economic pressures contribute to this fear of running out of money, including: high inflation (54%), Social Security not providing as much financial support as needed (43%) and high taxes (43%).
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Inflation seems to strike a nerve more with boomers than with other generations, with 61% of boomers saying high inflation contributed to their fear of running out of money, compared to 56% of millennials (and 55% of Gen Xers).
Gen Xers (70%) who are in their 40s and 50s and fast approaching retirement, worry the most about running out of money, followed by millennials (66%) and boomers (61%).
“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,” says Kelly LaVigne, VP of consumer insights, Allianz Life.
“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. A financial professional can design a strategy to help ease your worries about running out of money.”
Although financial advisors can help clients manage their money and achieve their financial goals by providing advice on investments, retirement planning, taxes, and estate planning, few people (23%) have addressed their fears with a financial professional. This is down from 28% in 2024.
Key findings from the study:
- 64% worry more about running out of money than death
- 62% say they are not saving as much for retirement as they would like
- 54% say that inflation is the number one contributor to their fear of running out of money
Plan now for a worry-free retirement
Despite being a rational, financially competent person, you, too, may wonder if your money will weather market turmoil, a higher cost-of-living and lower interest rates on savings. If so, here are eight things you can do now in pursuit of a worry-free retirement later on.
1. Make a plan
You can wing it in retirement, but that will only get you so far. It’s far less stressful when you have a concrete retirement plan in place. When do you want to retire? Or, if you’ve already punched the time clock for the last time, do you want to travel, move closer to the grandkids or downsize into a smaller home? Whatever retirement looks like to you, crunch the numbers and create a plan that keeps you on track. Calculate expenses using Kiplinger's retirement calculator, aiming for 70–80% of pre-retirement income.
2. Become debt-free
Paying off high-interest debts — big and small — can build confidence and provide a path to sprint cheerfully into retirement with zero payments hanging over your head. No loans, no credit card bills or outstanding car or mortgage payments. Just complete financial freedom.
Not there yet? You might consider unretiring - even if just for a few months to a year. The money you earn can go to paying off debt and help you reach your retirement goals faster.
3. Treat Social Security as a supplement
Social Security was never meant to be your primary source of income in retirement, so if you're counting on Social Security to cover all your retirement expenses, think again. Do the math and determine when to take benefits. Depending on your situation, claiming Social Security early at age 62 may be best. Or, waiting until your full retirement age (FRA) or even older to max out benefits may be better. Instead of relying on Social Security as your main source of income, build your nest egg with a solid retirement fund. That way, Social Security becomes just extra money, not something you have to depend on to survive.
4. Max out your tax-advantaged retirement accounts
If you’re not leveraging tax-advantaged retirement accounts, like 401(k)s and IRAs, you’re leaving money on the table. These types of income sources can help your money grow faster by reducing your taxable income, and if your employer offers a 401(k) employee match, that’s free money. Traditional or Roth IRAs also provide great tax benefits.
5. Build an emergency fund
Life throws curveballs when you’re not even in the game. For that reason, having a financial safety net in place when the furnace goes out, the roof needs repair or medical bills pile up can help pay the bills so your retirement plans aren’t derailed. Experts advise putting three to six months’ worth of expenses in a separate, easily accessible emergency fund account.
6. Diversify your investments
Putting all your money in one place, like the stock market, can be risky. However, diversification of your investments can protect you from market turmoil. A mix of stocks, real estate, bonds and other asset classes can help minimize losses when the market dips. That way, if one investment struggles, the others can help balance it out.
7. Take care of your health
As we age, our health becomes a bigger concern. One of the biggest mistakes you can make in retirement is to ignore how you’ll pay for your healthcare if and when something happens. That's because it can only take one extended hospital stay to potentially wipe out your savings. Having a Health Savings Account (HSA) is a tax-advantaged way to cover medical costs. Long-term care insurance can also help if you need to go into a nursing home or assisted living facility — neither is cheap. Besides, you can’t count on Medicare to cover all of the costs.
8. Consider unretiring
Going broke in retirement is a real and ever-present fear for many retirees and it's easy to underestimate how much it will cost to retire comfortably. The 2025 Planning & Progress Study by Northwestern Mutual puts that figure at $1.26 million. If you're retired, but short on cash, unretiring and going back to work may be an option to consider. And don't worry about being the only old-timer who is thinking about returning to work — in 2024, 37.3% of people age 55+ were employed— and the trend is gaining momentum.
With retirement savings, it's never too late to get started
The study highlights the ongoing struggle to prioritize retirement savings. Day-to-day necessities (63%), credit card debt (40%) and a mortgage or rent (35%) all add up, meaning less in the bank when you retire.
The earlier you start saving for your retirement, the better. Even small investments in a retirement account when you're in your 20s or 30s can grow into a substantial retirement fund.
But even if you’re older or in retirement right now, it’s never too late to start saving for your future.
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