Blame it on an increase in longevity, stock market volatility, concerns about the viability of Social Security, rising inflation, or a combination of it all, but either way, a growing number of Americans are worried they will outlive their savings in retirement.
The worries are for good reason. Even one of those issues can erode savings, forcing retirees to stretch their money more than can easily last during what could be a more than twenty-year period.
Fears of outliving savings are getting worse this year amid uncertainty brought on by tariffs and changes to Social Security.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
According to the 2025 Protected Retirement Income and Planning (PRIP) Study, a nationwide survey of both consumers and financial advisors conducted by IPSOS, 54% of Baby Boomers and Gen-Xers are fearful of outliving their savings in retirement, up from 48% in last year’s survey.
As a result, some people are delaying retirement, collecting Social Security benefits earlier than planned, or seeking guaranteed income to give them peace of mind in retirement.
Others are realizing that they will have to save more to ensure they can live comfortably in retirement.
How much more? Seniorly, an online marketplace for senior living communities, pegs the average gap at about $115,000. That covers the difference between what older adults’ projected spending in retirement will be and what they’re likely to bring in from Social Security, savings and investments.
That gap, which Seniorly says is present in 41 states and Washington, D.C., is worse depending on where you live.
Seniorly analyzed the latest available data on life expectancy at age 65, Social Security income, household net worth and cost-of-living metrics to determine in which states retirees will see the biggest shortfalls.
The five places where you're most likely to outlive your savings
If you live in these four states, and Washington, D.C., expect to need to save a lot more, according to Seniorly’s analysis. High living expenses and health care costs are largely to blame for the shortfall between expected savings and what you'll need to live.
#1 New York
Shortfall: $448,000
#2 Hawaii
Shortfall: $417,000
#3 Washington, D.C.
Shortfall: $407,000
#4 Alaska
Shortfall: $342,000
#5 California
Shortfall: $337,000
What you can do if you face a shortfall
If you are facing a retirement savings shortfall, there are ways to shore up money so that you can have the retirement you dreamed about.
Pushing out your retirement date can be an effective strategy. Even delaying retirement for six months or a year can have a big impact on the amount of money you can save.
Saving more in a tax-advantaged retirement account, such as a 401(k) or IRA, while you are still working (and taking advantage of catch-up contributions if you are over the age of 50) can also boost your retirement nest egg.
Downsizing once you are in retirement, cutting your budget, or considering working part-time are also effective ways to increase your cash flow in retirement.
Regardless of what you do, it's important to go in with your eyes wide open, which means knowing your numbers.
Understand how much your lifestyle costs, how much income you'll bring in each month and how much you have saved. The more you plan, the better off you'll be when you do retire.
Related content
-
I'm a Financial Planner: Here's How to Make the Most of Your Charitable Giving on a BudgetMaximizing the charitable donations you plan to make this year can help your financial plan stay on track and help give the most to the causes you care about.
-
I'm a Wealth Planner: These 3 Steps Can See You and Your Heirs Through a Wealth TransferBoth givers and receivers need to be seriously strategic about communicating, understanding tax efficiency and leveraging smart money moves.
-
Should You Skip the Wait and Prepay Your Retirement Dreams?He bought his retirement home more than a decade before he plans to retire. Was it the right move?
-
My $1.2 Million Vacation Home Has a $360K Mortgage. I Don't Need My Upcoming $45K RMD. Should I Use It to Pay Down the Mortgage?We asked wealth planners for advice.
-
Unwrapping Your Estate Plan for Your Kids: A Gift That'll Keep Giving Long After the HolidaysThe holidays offer families a perfect opportunity to discuss important, often difficult topics like long-term care, estate plans and legacy.
-
5 Ways to Teach Your Kids About Giving Back, From a Financial PlannerTeaching kids generosity goes beyond simple rules and can involve fun, practical strategies, such as letting them lead giving, volunteering together and more.
-
I'm a Financial Planner: Here's How You Can Use AI to Improve Your FinancesApps can help with budgeting, saving and investing, financial coaching and debt management. But providing your personal information can also raise your risks.
-
How to Get HBO Max for $2.99 with Hulu This Black FridayTake advantage of Hulu’s holiday pricing and stream HBO Max hits for only $2.99 a month.
