For a growing number of Americans, the prospect of outliving their financial resources has become a more significant source of anxiety than death itself. According to an annual survey conducted by the Allianz Center for the Future of Retirement, 67% of Americans now report that they are more concerned about running out of money than they are about passing away.
This finding has remained consistent across five consecutive annual surveys, with the margin of concern reaching a record high this year.
Kelly LaVigne, vice president of consumer insights at Allianz, explained that this fear is rooted in the practical realities of aging. It is not just about having money, but specifically about the ability to afford essential needs like healthcare and long-term care.
The survey, which polled 1,000 adults aged 25 and older with household incomes of at least $50,000 or investable assets of at least $150,000, highlights how economic and socioeconomic pressures are converging to create this unease.
Factors such as high inflation, rising costs for medical services, and the decline of traditional pensions that once offered guaranteed income streams are all contributing to the stress.
David John, a senior strategic policy adviser at the AARP Public Policy Institute, noted that the public is frequently bombarded with high-dollar retirement benchmarks, such as the often-cited $1.4 million figure required for a comfortable retirement. While these large numbers may not apply to every individual's specific circumstances, they serve to scare people and heighten their sense of financial vulnerability.
This sentiment is supported by a broader retirement study released in April by the Transamerica Center for Retirement Studies, which ranked financial strains as the primary fear among Americans.
The financial burden is further exacerbated by the rising cost of care. According to data from CareScout, the average monthly charge for an assisted living facility has reached $6,200. Furthermore, life expectancy at birth reached a record high of 79 years in 2024, according to the Peterson-KFF Health System Tracker.
Catherine Collinson, CEO of the Transamerica Center, pointed out that while lifespans have increased significantly in recent decades, there has not been a corresponding increase in health-span, meaning many retirees face longer periods of potential care costs.
Additionally, Social Security faces a looming shortfall; if Congress fails to act, research suggests retirees could face a 28% cut in monthly benefits by 2032.
To mitigate these risks, experts suggest several financial strategies. One of the most effective moves is to delay claiming Social Security benefits. While it is tempting to start at age 62, every year of postponement until age 70 increases the monthly benefit.
John of AARP emphasizes that maximizing these payments is crucial for covering essential expenses over a longer lifetime. Furthermore, federal law now allows for higher savings limits in retirement accounts.
In 2026, employees can contribute up to $24,500 to a 401(k), with those 50 or older eligible for an additional $8,000 in catch-up contributions, bringing the total to $32,500. Workers aged 60 to 63 have access to an even higher "super catch-up" limit of $11,250. IRA contribution limits for 2026 are set at $7,500, with a $1,100 catch-up limit for older savers.
Despite these widespread fears, the Transamerica Center reports that only 29% of Americans engage in regular retirement planning, and only 31% utilize the services of a professional financial adviser. Experts recommend starting by visiting the Social Security website to obtain a personalized benefit estimate, then tallying core monthly expenses to see how they align with expected income.
Working with a professional adviser can provide clarity on potential risks and outcomes.
For those concerned about long-term care, policies vary by benefit amount and coverage length. The National Council on Aging reported in 2025 that a typical policy for a 55-year-old providing a $165,000 benefit might cost $950 annually for a man and $1,500 for a woman. Alternatively, some individuals opt for life insurance policies with long-term care riders, which allow the death benefit to be used for care costs.
Collectively, those factors drive up expectations for how much money an ordinary American might need to fund even a modest retirement.
For every year you postpone taking Social Security, your monthly benefit rises, up to age 70. Economists make a compelling case that you will reap more money over your lifetime if you wait, based on human longevity.
