64% of Americans Fear Going Broke in Retirement More Than Death: 7 Ways To Avoid Running Out of Money
Written by
John Schmoll
Edited by
Jenna Klaverweiden
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According to Allianz Life, 64% of surveyed Americans fear outliving their money more than death.
Those polled cite high inflation, taxes and uncertainty around Social Security as the leading causes of their fear. If you’re fearful of going broke in retirement, here are seven ways to protect yourself.
1. Plan To Live Longer
Living a long, full life is great, but not if you’re doing it on financial fumes. With medical advancements continuing, it’s not unreasonable to think more people will live longer. A 65-year-old man can expect to live until 84, and a 65-year-old woman can expect to live to 87, according to the Social Security Administration (SSA).
That may mean today’s retirees need retirement assets to cover up to three decades of living expenses. Start planning now to avoid going broke.
2. Increase Savings Annually
How much you save directly affects retirement readiness. Working Americans still have time to grow their savings. Many 401(k) plans allow contributions to increase at set intervals.
Consider increasing contributions annually, or after each raise. Make sure to contribute enough to receive a full match from your employer.
3. Don’t Overlook Catch-Up Options
The IRS allows Americans age 50 and older to make additional catch-up contributions to IRAs and 401(k) plans. Qualifying Americans can contribute an additional $1,100 to Roth and traditional IRAs for 2026 and an extra $8,000 to 401(k) or 403(b) plans, according to Vanguard.
The amounts may seem insignificant, but the possible growth is substantial.
4. Be Strategic About Social Security
Americans can claim Social Security benefits beginning at age 62. If you need the funds to live, it’s understandable. However, for people who continue to work or can rely on other resources, delaying benefits can be lucrative.
Waiting until full retirement age (FRA) can increase payouts. Not only does your payout increase, but it means more impact when you receive a cost-of-living adjustment.
5. Attack Debt
Credit card debt can be suffocating, especially in retirement planning. Per Allianz, people polled cited credit card debt as the second-most-common factor limiting retirement savings.
It’s best to prioritize paying off credit card debt, then other consumer debt. Erasing debt instantly frees up more money to save, regardless of your age.
6. Plan for Life’s Curveballs
Life is unpredictable, and that doesn’t change in retirement. Having a fully funded emergency fund is a good way to protect against uncertainty. Experts recommend saving at least six months’ worth of living expenses.
Don’t forget healthcare costs, either. The average retiree can expect to spend $172,500 on medical expenses, according to Fidelity. If you have access to a health savings account (HSA), that can be a good, tax-efficient way to begin saving.
7. Be Tax-Wise
Retirement planning isn’t just about growing assets. Taxes also play a key role in protecting your resources. Working with a tax advisor is a helpful way to shield as much as possible from taxes and penalties.
A tax advisor can diversify your taxes to optimize your portfolio and limit taxable liability. You don’t need to wait until retirement age to do this; starting early can help.
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