I’m Retiring in 2025, but I Can’t Sleep Because of Worry and Fear. What Should I Do?

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Monsters under the bed aren't the only thing keeping pre-retirees awake at night. So are fears about retirement, and for good reason. Retirement isn’t cheap; it can last over twenty years, and one unexpected illness or bad financial move could derail your plans altogether.

Throw in tariffs, geopolitical unrest and concerns about Social Security, and understandably, Americans nearing or in retirement are losing sleep.

The good news is you can slay those retirement fears; all it takes is some planning and adjustments.

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“Fears are always surmountable. It’s nothing more than a manifestation of your anxiety bubbling up,” says Pam Krueger, founder and CEO of Boston-based Wealthramp, an SEC-registered adviser matching platform. “The fear is the monster, and if you continue to wait and put off doing something about it, the stress can kill you.”

When it comes to retirement fears, those centered around saving, health, sense of purpose, legacy and investment losses are big ones.

A lack of preparation in each area can easily conjure up nightmares and keep you tossing and turning. But there are actions you can take to slay those monsters and get a good night's sleep. Here’s how.

1. What if I haven't saved enough money?

Everyone knows they should save for retirement, especially the older they get. The general rule of thumb is to stash away 10% to 15% of your annual income in a tax-advantaged retirement savings plan.

But not everyone does that, which can lead to nightmares that you may outlive your money. It’s made worse if you don’t know how much you are supposed to save.

The solution: Start saving more, even if it’s a small amount.

“We all have a responsibility to save and invest for retirement. Social Security was never designed to support the full cost of living,” says Rob Williams, managing director of financial planning, retirement income, and wealth management for the Schwab Center for Financial Research.

“To save enough to sufficiently fund the move into making work optional, pay yourself first. Have that money come out of your budget almost as an expense.”

If you have a 401(k) plan, Williams says to make a conscious effort to increase your savings rate, at least by meeting a company match if available. If you don’t, you're leaving free money on the table.

If you are 50 or older and can afford to take advantage of catch-up contributions, you can save an additional $8,000 in 2026.

Super-catch-up contributions for workers between 60 and 63 let you save a maximum of $11,250 in 2026 instead of $8,000.

If you are saving as much as you can and still feel like you’ll face a shortfall, delaying retirement by a few years can help you save more and mitigate that fear. (To get an idea of how much you should have saved based on income, check out our series: Retirement Savings on Track? How Much You Should Have by 50 and 55, Retirement Savings on Track? How Much You Should Have by 55 and 60, and Retirement Savings on Track? How Much You Should Have by 60 and 65.)

If you are already in retirement and feel like you don’t have enough saved, Krueger says to take a hard look at your current expenses and spending habits and adjust accordingly, considering the impact inflation will have on your savings.

After all, it wasn’t too long ago that inflation hit a more than 40-year high. “It could mean getting a part-time job, or it might mean selling your house. The earlier you know (how much you need to save), the better a position you are in to fix it,” says Krueger.

2. Will I be able to afford health care costs when I retire?

Health care is expensive, more so as we age. According to Fidelity Investments, a 65-year-old retiring today will need about $172,500 to cover healthcare expenses.

That figure doesn’t even consider any unexpected illnesses or accidents, nor does it account for a stint in a long-term care facility, which can set you back tens of thousands of dollars, depending on how long you need care.

If you haven't been that healthy, it's understandable that concerns about your health keep you up.

Even if you are healthy, getting sick when you retire and not having the cash to cover it can be scary.

The solution: If you aren’t in retirement yet and have a high deductible health insurance plan, take advantage of a health savings account, says Dan Sudit, founding partner at Crewe Advisors, the Salt Lake City, Utah, independent advisory firm.

This is a tax-advantaged way to save money for unexpected health events. The great thing about an HSA is you can roll it over each year, essentially hoarding money that can be used for qualified medical expenses when you do exit the workforce.

“A lot of clients can set money aside in an HSA plan and don't use it until retirement,” says Sudit.

Another way to slay this fear is to play out different what-if scenarios and see if your current retirement savings rate will be enough to cover it, considering your family’s medical history and potential longevity.

It's also a good idea to check your current health insurance, whether you are in or out of retirement, to ensure it gives you the coverage you need now and in the future.

“The way to put the fear to rest is to not let questions go unanswered,” says Krueger.

3. I'm afraid I won't have any purpose when I retire

For people entering retirement now or in the future, a lack of purpose could be what nightmares are made of.

That’s particularly true if you love your job, your self-worth is attached to it, or the thought of idle time freaks you out.

It's made worse if you were forced into retirement and now have to figure out ways to spend your time.

The solution: Just like you plan how much you have to save for retirement, you need to envision what you’ll do when you finally get that freedom.

“Getting rid of the 'freedom without purpose fear' all starts with thinking about what you really care about and why you wanted to retire in the first place,” says Krueger. “If you just wanted to stop the 9-to-5 grind, you have to substitute that with something else.”

That something else can be completely different things that keep you from being bored in retirement. For some, it could be volunteering or taking free college classes. Others might want to get a part-time job.

“Retirement is all about blending money and health and wellbeing and purpose,” says Krueger.

As you search for your purpose, Sudit says to be open-minded and test-drive different things to identify what gives you personal satisfaction. It doesn’t have to be a life-altering activity; it just has to be impactful to you.

4. Will my heirs fight over my estate?

If you’ve amassed a small fortune, own a small business, or have other assets and haven’t planned for how they will be passed down, it's understandable that you’re losing sleep.

You don’t want your loved ones fighting over your assets when you’re gone. Unfortunately, many of us don’t give our legacy too much thought until we are in the later stages of retirement, and if we wait too long, it can be too late.

The solution: Talk with your adult children or family members about estate planning — how you want your money and assets divided up.

It may be an uncomfortable conversation, but one you shouldn’t avoid. If you don’t want to do it face-to-face, Williams suggests writing a family love letter that states your values and what you want your loved ones to use the money for.

If your legacy is complicated or has a lot of moving parts, consider the help of a financial adviser who can come up with an inheritance plan that matches your vision.

“A big thing people need to think about is that what is important to them may not be important to that next generation,” says Sudit.

“So often people who have a family compound or lake house want to make sure the kids or grandkids can enjoy it, but in reality, it ends up being less of an asset and more of a burden.” That's just one example of the worst assets to leave your kids or grandkids.

5. Will stock losses leave me with a shortfall?

The stock market has been volatile in 2025, causing anxiety and dismay, especially when you check the balance in your 401(k) or IRA.

If you were planning to retire this year or are already in retirement, it's understandable that you would be concerned about the state of your retirement savings.

The solution: Stay the course. The stock market rises and the stock market falls, and history has proven that staying invested is better than panicking and acting on emotions.

During the Great Recession and the steep sell-off in the early days of the COVID pandemic, investors who stuck to their financial plans recouped their losses and then some.

“It may be a blip on the radar or a year thing,” says Emily Irwin, head of Wells Fargo’s advice center, about the recent stock market sell-off. “Regardless, if your plan is telling you you’ve taken the right steps, you are prepared and have a cushion in place to take into account volatility,” you don’t need to be worried or act on the emotion. Investors who do react tend to sell low and buy high.

Put those retirement fears to bed

Retirement can be scary. It's the next phase of your life after decades of saving and preparing for it.

But the prospect of retirement doesn't have to keep you tossing and turning at night. If you face your fears head on you can slay your worries and get a good night's sleep.

Donna Fuscaldo is the retirement writer at Kiplinger.com. A writer and editor focused on retirement savings, planning, travel and lifestyle, Donna brings over two decades of experience working with publications including AARP, The Wall Street Journal, Forbes, Investopedia and HerMoney.