Death might be a significant concern that haunts Americans, but many see the prospect of financial insolvency during retirement as an even more daunting peril.
A recent survey from Allianz Life, the life insurance giant, disclosed a “striking” 61% of people voiced this fear. However, actions to prevent this bleak outcome often seem missing from their financial strategies.
People are struggling with present-day challenges like persistent inflation, interest rate changes, market instability, and others, leaving them unable to think about securing their financial future.
In the Allianz survey, almost half of the respondents acknowledged reducing or halting retirement savings due to current financial turmoil, with no expectation to enhance their savings soon — posing a real risk of outliving their financial resources.
Vice President of Consumer Insights at Allianz Life, Kelly LaVigne says, “We can’t leave retirements to luck. More than ever, the evolving retirement landscape necessitates a firm plan to adhere to.”
There are myriad ways to enrich your retirement savings and conquer the fear of financial instability in old age.
Retirement Confidence Across Generations Confidence about retirement varies among Gen Xers (aged 43-58), millennials (aged 27-42), and boomers (aged 59-77), as revealed in the Allianz study.
LaVigne comments, “Given the past decade’s events, from financial disasters to politics and the pandemic, it’s natural for Gen Xers and millennials to feel unsure about what lies ahead.”
Gen Xers are notably anxious, with declining confidence in their financial ability to sustain their desired lifestyle. This apprehension is evident in their confidence levels, dropping from 75% in 2021 to 69% in 2023.
The survey highlights 54% of Gen Xers lacking clarity on retirement savings, 59% uncertain about how long their money will last, and 64% worrying about insufficient savings—a jump from 55% in 2021.
Rising living costs are a significant concern, with 67% of Gen Xers feeling their income isn’t keeping pace. These statistics are generally worse than those for millennials, who have more time to save, and boomers, many of whom are already retired.
Nearly 40% of Americans feel their retirement strategy is off course, with confusion about how to restore it. But there are ways to transition from anxiety to action.
Retirement planning is a multifaceted process. It requires a balanced approach that encompasses saving, investing, and preparing for unforeseen events. With proper planning and guidance, you can transition from uncertainty and anxiety to a secure and fulfilling retirement.
