More Scared of Going Broke Than Dying? 9 Ways To Beat Retirement Anxiety
Written by
Jordan Rosenfeld
Edited by
Levi Leidy
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Most people don’t like thinking about death but for many, the idea of running out of money in retirement is even scarier.
A new study from Allianz Life found that 64% of Americans feel stressed about the possibility of outliving their savings, a fear that cuts across age groups and financial backgrounds.
Janeil Pierre, an accredited financial counselor and the author of “The Money Confidence Code,” said it’s not just a fear rooted in financial hardship, but “the emotional and psychological toll of watching one’s quality of life decline after decades of work.”
Pierre and other experts offer some tips to beat this anxiety by being prepared.
Build a Clear Roadmap
Clarity is the first step, Pierre said. “Define what a financially secure future looks and feels like for you. Do you want to travel, downsize, support family or simply maintain your current lifestyle? Having a clear vision provides a foundation for action.”
Robert R. Johnson, PhD, a certified financial analyst and professor of finance in the Heider College of Business at Creighton University, refers to this as “a roadmap,” or an “investment policy statement” (IPS), a tool that “takes into account the investor’s time horizon, risk tolerance, goals and objectives and unique circumstances. An IPS is unique to an individual.”
Once that’s in place, calculate your retirement needs, create a plan, automate your savings and regularly check your progress. The more intentional you are, the more empowered you’ll feel, Pierre suggested.
Work Backward
Another approach is to work backward, Johnson said. “That is, they need to establish a budget in retirement and calculate how much they need to save and invest to achieve that goal.”
Using a reliable online calculator, such as the one on Calculator.net or Fidelity, can help, Pierre added. “Aim to replace 70%-80% of your pre-retirement income annually in retirement; personalized tools will give you a clearer picture,” she said. Knowledge replaces fear.
Additionally, determine a realistic budget, Johnson said. “Oftentimes, people underestimate their expenses in retirement.”
Nail Down Guaranteed Income Sources
Guaranteed income sources, such as Social Security, pensions or certain types of annuities, can provide peace of mind due to their stable and predictable cash flow, regardless of market conditions, Pierre said.
“Knowing you have a fixed amount coming in each month helps cover non-negotiable expenses and reduces dependence on investment withdrawals during market downturns.”
Johnson warned, however, that while Social Security may be consistent or reliable, it’s likely not enough to retire on for most people.
Make a Money Mindset Shift
Pierre pointed out that “money is a mindset long before it’s just numbers. A person’s beliefs about money directly impact their relationship with it and the reality they experience.”
She urged retirees to stop viewing money as something to fear and start seeing it as a tool. “Fear often arises from not knowing your numbers or feeling ashamed of your past decisions. However, your financial data is just that — data. It tells a story, but it doesn’t define your future.”
Emphasize Healthcare
One of the the most significant expense in retirement, and one of the least predictable, is healthcare, Pierre pointed out, so pre-retirees should:
- Contribute to a Health Savings Account (HSA) if eligible, as it offers triple tax advantages.
- Estimate healthcare costs realistically. A 65-year-old couple retiring today may need upwards of $300,000 for healthcare in retirement, according to Fidelity.
- Consider long-term care insurance, especially if there’s a family history of chronic illness.
- Include healthcare premiums, deductibles and out-of-pocket expenses in your retirement budget.
Understand Withdrawal Rates
Grasping your safe withdrawal rate is very important, as well, Pierre said. “Withdraw no more than 4% of your retirement portfolio annually, as a starting point. However, it’s wise to personalize that amount based on your lifestyle, inflation and market performance.”
Retirees may also want to opt for bucketing strategies, where your money is segmented into short-, medium- and long-term needs, can help avoid overspending and hoarding cash out of fear.
“The more visibility and structure you have, the more confidently you can spend,” Pierre said.
Consider Working Part Time Longer
Working part time or postponing full retirement can alleviate financial pressure and anxiety, depending on a person’s overall situation and needs, Pierre said.
“Engaging in part-time work can also provide structure, purpose and social connection, all essential for emotional well-being in retirement,” she pointed out.
Adopt Some Key Financial Habits
Pierre recommended a few key habits that can make sure you’re on track for retirement:
- Conducting annual or semi-annual financial reviews to check progress and adjust for new life events.
- Working with a financial planner or retirement coach to get personalized guidance.
- Using a retirement tracking app, such as Personal Capital or Empower, to stay informed on net worth, income projections and expenses.
- Creating a written retirement plan, including income sources, withdrawal strategy, healthcare costs and legacy planning.
These habits foster confidence, clarity and a sense of control, replacing fear with strategy.
Make Your Money Work Harder
Don’t just save — make your money work harder for you, according to Cetin Duransoy, CEO at Raisin GmbH. “Not all bank accounts are created equal. You can prioritize safe, guaranteed investments like CDs and high-yield savings accounts to earn interest and fight inflation,” he said.
Even modest amounts can grow meaningfully over time when placed in competitive, insured savings products, and that kind of consistency is key in a high-cost environment.
Overall, remember there are easy ways to improve your financial footing if you know where to look, and every adjustment now helps protect your retirement goals later. Most importantly, don’t panic — strategize.
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