We have all heard the phrase “a fate worse than death.” When discussing modern retirement planning, a vast majority of Americans now believe that such a reality exists.
During this era of widespread middle-class financial insecurity, it is logical that our primary retirement anxiety is not mortality. Instead, the greatest fear for many is insolvency.
We recently reviewed this “fear factor” in an insightful article from USA Today, written by reporter Daniel de Visé. He highlights survey data showing that most U.S. adults do not fear their last breath as much as their last dollar.
The specific outcome keeping Americans awake at night is the prospect of running out of money during their golden years. This financial unease has become a dominant theme in the current economic landscape. Let’s examine what de Visé reports regarding these trends. Afterward, we will consider a simple tool that can replace this pervasive fear with a genuine sense of control.
Survey Data: Financial Fears Plague Two-Thirds of U.S. Adults
For many Americans, the dread of depleting their savings has officially surpassed the fear of death. Reporter Daniel de Visé notes that this is a primary finding from a recent study.
As de Visé writes: “That’s one finding from an annual survey by the Allianz Center for the Future of Retirement. It found that 67 percent of Americans worry more about running out of money than death.”
This survey reflects a deep-seated anxiety regarding what de Visé describes as the financial implications of remaining alive. This shift in perspective highlights how retirement security has changed.
Kelly LaVigne, the vice president of consumer insights at Allianz, comments on these specific findings. She notes that the fear centers on running out of money and being unable to afford healthcare or long-term care.
Why the Retirement Financial Fear Factor Is Growing
The most recent Allianz survey reached 1,000 adults ages 25 and older. Participants had household incomes of at least $50,000 or investable assets of at least $150,000. In this study, Americans were asked to choose between two major worries: death or running out of money. While “running out of money” has topped the list for five years, the margin is now at its highest point.
Daniel de Visé explains that several economic and socioeconomic reasons are driving this trend. People are living longer, inflation remains high, and the costs of healthcare and long-term care continue to rise.
Furthermore, fewer workers are retiring with traditional pensions that offer a guaranteed income stream. These combined factors increase the amount of capital needed to fund even a modest retirement.
David John, a senior strategic policy advisor at the AARP Public Policy Institute, notes that people often see massive figures like $1.4 million required for retirement. While these big numbers may not apply to everyone, they frequently cause significant alarm.
Transamerica Study Confirms Widespread Retirement Anxiety
While the Allianz survey focuses on a simple comparison, a more expansive retirement study was also released in April. The Transamerica Center for Retirement Studies also ranked the greatest fears of Americans.
In an echo of the Allianz findings, most of these concerns involve financial stability. De Visé highlights the top three results from this comprehensive research.
Declining health requiring long-term care was a concern for 39 percent of those surveyed. Meanwhile, Social Security cuts were noted by 38 percent of respondents. Outliving savings and investments followed closely, noted by 36 percent. Transamerica Center CEO Catherine Collinson emphasizes that we cannot overestimate the financial strains Americans currently face.
As de Visé adds, there is significant hard data to support these fears. Rising costs and systemic changes to retirement benefits are creating a perfect storm for retirees.
The Rising Costs of Care and Potential Social Security Cuts
The financial pressure is real, as the costs for long-term care continue to escalate. According to CareScout, the average assisted living facility now charges approximately $6,200 per month.
Additionally, Social Security faces a projected shortfall as soon as 2032. De Visé writes that if Congress takes no action, research suggests retirees could see a 28 percent cut in monthly benefits.
Life expectancy in 2024 reached a record high of 79 years, based on the Peterson-KFF Health System Tracker. While living longer is a goal for many, it increases the risk of outliving one’s assets.
Catherine Collinson points out that while we have seen increases in lifespan, we have not necessarily seen the same increases in “health-span.” This gap often leads to higher healthcare and long-term care expenses.
Because outliving savings is such a daunting prospect, de Visé offers several financial steps to help people prepare for these unknowns. These strategies focus on maximizing available resources.
Why Waiting to Claim Social Security Often Benefits Retirees
The first recommendation from de Visé is to delay collecting Social Security benefits for as long as possible. While it is tempting to claim at age 62, there are compelling reasons to wait.
For every year a retiree postpones Social Security, the monthly benefit amount increases until age 70. Economists suggest that waiting usually results in more total lifetime income based on current longevity trends.
David John notes that the closer an individual can get to age 70 before claiming, the higher their lifetime benefit will be. This helps cover more essential expenses with a guaranteed income source.
How to Maximize Your Retirement Savings Options
Recent changes in federal law allow pre-retirement workers to save more in their 401(k) or IRA accounts. Taking advantage of these higher limits is a key strategy for building a safety net.
De Visé writes: “Any employee with a 401(k) plan can contribute as much as $24,500 in 2026. Savers 50 or older can make additional ‘catch-up’ contributions up to $8,000, raising the total contribution to $32,500.”
Workers aged 60 through 63 have access to an even higher “super catch-up contribution” limit of $11,250. These provisions are designed to help those close to retirement bolster their savings quickly. However, IRA contribution limits remain more modest, with the 2026 limit set at $7,500. The catch-up contribution for older savers is $1,100, bringing the total possible contribution to $8,600.
Evaluating Your Options for Long-Term Care Insurance
Long-term care insurance is a complex product that is not one-size-fits-all. Costs and structures vary based on the specific benefits and the length of care covered by the policy.
As an example, de Visé notes that a typical policy providing a $165,000 benefit for a 55-year-old might cost $950 annually for a man. According to the National Council on Aging, the cost for a woman would be around $1,500.
Kelly LaVigne of Allianz suggests that a long-term care policy is often the best answer if it is affordable and available. However, de Visé mentions other alternatives for those who may not qualify. One such option is a life insurance policy with a long-term care rider. This allows the policyholder to use a portion of the death benefit to pay for care expenses during their lifetime.
Check out this recent Blog article about how to navigate the rising cost of long-term care.
The Importance of a Comprehensive Retirement Plan
Despite these widespread worries, de Visé observes that many Americans do not take the time to create a formal plan. Data from the Transamerica Center shows that only 29 percent of people plan regularly. Furthermore, only 31 percent of Americans currently work with professional financial advisors.
For those who are unsure how to start, de Visé suggests visiting the Social Security website. The site provides estimates of monthly benefit checks, which are essential for creating an accurate budget for projected expenses. This allows you to compare your expected income against your anticipated costs.
De Visé concludes by encouraging readers to work with a professional advisor when possible. Catherine Collinson notes that advisors have experience with many clients and understand potential risks and outcomes. (This Blog article offers helpful insight on determining when and how to engage a financial advisor on your team.)
Rajiv Nagaich Explains the Need for a “Financial Dashboard”
We asked Rajiv Nagaich to comment on these strategies, and he emphasized one critical element that supports all other efforts. He believes that retirement planning must be approached more holistically.
“If you’re serious about not running out of money in retirement, you need to think about your plans more holistically,” Rajiv says. He advises sitting down with an objective financial planner to create a “financial dashboard.” A financial dashboard is a specific planning tool designed to provide peace of mind regardless of economic shifts. It serves as a guide for making the right decisions if a financial reset becomes necessary.
Rajiv adds that without a tool to help reach a healthy financial place, people will face the same fears repeatedly. Having a clear visual of your financial health is vital for long-term success. If you are ready to explore this planning concept, contact us for a recommendation for a qualified planner. This strategy should be at the very top of your retirement priority list.
Rajiv Nagaich: Your Retirement Planning Coach and Guide
Rajiv Nagaich’s newest program on PBS, titled Designing Your Ideal Future, is sharing this powerful message with audiences nationwide. The show encourages thousands to rethink their approach to retirement planning. In this one-hour special, Rajiv guides viewers through the steps of creating a plan that supports their desired lifestyle. He moves beyond generic paperwork to focus on personal values and goals.
Rajiv reveals how to integrate your unique perspective into every legal and financial document. This ensures your retirement plan becomes a living system that adapts to your future needs. The program includes real-world examples and a live Q&A session where Rajiv answers questions about legal readiness and family communication. It is an ideal resource for anyone approaching or currently in retirement.
Taking Action for Your Retirement Success
As Rajiv frequently points out, roughly 70 percent of retirement plans eventually fail. Many people watch their retirement dreams turn into nightmares due to nursing home costs or becoming a burden to their families.
If you want to ensure this does not happen to you, these resources are essential for your success. You can check your local PBS station for airtimes and access companion tools online.
Available resources include a free Legal Readiness Quiz and tools to help you build a complete LifePlanning system. These are designed to provide a clear and effective approach to your future.
Don’t be one of the millions of Americans who sleepwalk into a retirement they never intended to have. Your retirement can be the fulfilling life you have always hoped for if you start planning today. Take the first step by watching and sharing Rajiv’s message. And as always – Age On, everyone!
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