Don’t Fear the Reaper. Running Out of Money in Retirement May Be Scarier

Dying is one thing, but living without money is another, according to a recent survey.

April 24, 2025

Death and taxes — maybe it’s the certainty of those that make them less worrisome than something people have more control over: Running out of money in retirement.

Almost two-thirds of people cited exhausting their financial resources as a bigger worry than dying, according to a report Tuesday from Allianz Life. The rates were higher among Gen Xers (70%) and millennials (66%) than baby boomers (61%), according to results of the survey of 1,000 people conducted earlier this year. Inflation, high taxes, and low expectations for Social Security income were the top reasons behind the sentiment. Less than a quarter, 23%, said they have raised their concerns with a financial professional, down from 28% in 2024, according to Allianz.

“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,” Kelly LaVigne, the company’s vice president of consumer insights, said in an announcement.

Hoping for the Best, Bracing for the Worst

Other data show a rosier picture. Two-thirds of workers and 78% of retirees said they are confident in having enough money, according to a report Thursday by the Employee Benefit Research Institute. Still, there are concerns. EBRI data show:

60% of workers and 80% of retirees are worried about their Social Security benefits being reduced.
People expect to retire at a median age of 65, but the actual median age of retirement is 62.
About 40% of retirees said health care costs are higher than they had expected.
70% of workers are worried about having to cut their spending because of inflation, market volatility, and rising housing costs.

Banking on Sunshine. It’s not unusual to see retirees having higher financial confidence than folks in the workforce. “They know what to expect,” said Craig Copeland, director of wealth benefits research at EBRI. “They know what their savings are. They know what their expenses are.” Even so, people should plan for retiring earlier than expected, he said.

While that’s long been an issue for private-sector workers who get laid off late in their careers, the recent cuts to the federal workforce show that it is also affecting the public sector, he said. “A job loss can change your entire path to retirement.”