Nearly two-thirds (63 per cent) of Americans say they worry more about running out of money than death, up from 57 per cent in 2022, according to a new survey by the Allianz Life Insurance Co. of North America.
The survey, which polled more than 1,000 employees with $150,000 investable assets, found generation X was most likely to express this sentiment (71 per cent), compared to their millennial (64 per cent) and baby boomer (53 per cent) counterparts.
Read: 81% of U.S. employees concerned about retirement readiness amid inflation: survey
Respondents cited high inflation (43 per cent) as the most common concern contributing to their worry about running out of money, including half of those who identify as Black/African American (52 per cent) and Asian/Asian American (51 per cent). By contrast, roughly two-fifths of Caucasian (41 per cent) or Hispanic (39 per cent) workers agreed with this sentiment. Baby boomers (48 per cent) were also more likely than millennials (44 per cent) or gen-Xers (39 per cent) to say high inflation contributes to their concern about running out of money.
As well, gen-Xers were more concerned than other generations that not saving as much as they should for retirement would contribute to them running out of money. When asked about some of the ways they could address these concerns, respondents cited increasing their retirement savings (41 per cent), reducing their current spending and saving more (38 per cent), putting a portion of their retirement savings in a product that provides lifetime income payments (35 per cent), working longer and retiring later (35 per cent) and putting a portion of retirement savings in a product that provides a balance of market protection and growth (26 per cent)
“Running out of money in retirement is a scary thought,” said Kelly LaVigne, Allianz Life’s vice-president of consumer insights, in a press release. “That’s why it is so important to have a thorough financial strategy for retirement. . . . A written financial plan can help you ensure you are prepared with your finances so your money can last your lifetime and help ease the concerns you have that you will run out of money.”
Read: 55% of Americans worry they won’t have financial security in retirement: survey