Will You Outlive your Money

If you are currently retired or just researching what to do before you retire, here is some financial information that you need to know.

In 2022 57% of Americans were worried about running out of money when they retire. In 2024 that statistic has jumped to over 63% according to an April 2024 study by Allianz titled Nearly 2 in 3 Americans Worry More about Running Out of Money than Death.

Gen Xers are the most likely to say this with 71% more worried about running out of money than death, compared to 64% of millennials and 53% of boomers.

· 63% are more worried about running out of money than death.

· 43% say high inflation contributes to their worries.

· 35% say putting a portion of retirement savings in a product that provides lifetime income payments was a top solution to their concern about running out of money.

Inflation, the health of Social Security and many other factors like mortgage and credit card debt play a key factor in Americans concern about outliving their retirement. The reality is that knowing you can run out of money as you enter retirement or are currently retired will keep you awake at night.

If you are able, you can increase your contributions to a 401K retirement fund. If you are able, you can consider modifying your lifestyle to save money. If you are able, you can start funding your ROTH IRA. If you are retired and able, you can work longer and downsize, but for many your best solution might be to rethink where your money is placed, and the fees associated with managing that money. 

A good portion of retirees and those about to retire are diversifying their portfolio with market stocks, annuities, and insurance products to balance growth and asset protection. Then there is cost of Long-term Care and increasing medical costs.