Many Americans report greater fear of running out of money during their retirement years than they do of death, according to a survey. This apprehension is most pronounced among those in the Gen X generation, with 70% expressing this concern.
The 2025 Annual Retirement Study by Allianz Life found that 62% of surveyed individuals are not saving as much as they desire for retirement. Inflation is a contributing factor to money fears for 54% of respondents.
While inflation is a worry across age groups, boomers were more likely to cite it as a primary reason for their financial anxiety compared to millennials or Gen Xers. Other factors fueling concern include the belief that Social Security income will not be sufficient (43%) and high taxes (43%).
Day-to-day necessities prevent 63% of Americans from saving more. Credit card debt impacts 40%, and housing debt affects 35% of people's ability to save.
Some younger adults, including elder millennials, report diligently following recommended practices like consistent saving since their early 20s and buying homes before interest rate increases. However, uncertainty about future economic conditions, the stability of the market, and the potential impacts of climate change on the economy temper their confidence compared to the retirement experience of their boomer parents.
Projections from a financial planner for one millennial couple rely on assumptions, including sustained economic growth, consistent investment returns, and significant income from sources like a 401(k). Disruptions to jobs, salaries, or external factors like climate impacts introduce doubt into these long-term scenarios.
Despite concerns about the future, few Americans have sought professional financial guidance. Only 23% of those surveyed said they had discussed their fears with a financial professional, a decrease from 28% in 2024. Potential solutions Americans believe would help address money concerns include increasing retirement savings (44%), reducing spending (41%), and working longer (39%).
Kelly LaVigne, vice president of consumer insights at Allianz Life, stated, “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. … A financial professional can design a strategy to help ease your worries about running out of money.”
