The navigation of inflation, market volatility and fear spurred by regional bank failures have created a stressful environment for Americans. A majority of Americans now have a greater fear of running out of money than dying, according to a recent study conducted by Allianz Life.
“Recent financial crises caused 46% [of Americans] to say they have reduced or stopped saving for retirement and don’t expect to increase their savings levels in the foreseeable future,” the study results explained. “At the same time, 49% say that everyday costs increasing so much that they won’t be able to afford basic expenses is one of the greatest risks to their retirement income, up from 44% in 2022 and 38% in 2021.”
Forty percent of respondents also admitted that their current retirement saving strategy has been “derailed,” and how or if it can get back on track is uncertain. And 56% of respondents consider “financial crises” as a permanent fixture of their retirement planning posture.
“And while a remarkable 61% of Americans say they are more afraid of running out of money than they are of death, many are not taking the steps necessary to set themselves up for a successful financial future and retirement,” the results said.
Per the survey, 40% of respondents also admitted they have no retirement plan and will determine which direction t take “when they get there,” while 56% of respondents said they do not know how to start saving for retirement outside of establishing a 401K or IRA. Only 42% of respondents have a written financial plan.
“People’s retirements are too important to leave to chance,” says Kelly LaVigne, VP of consumer insights at Allianz Life. “The key takeaway here is that the new retirement reality requires everyone, now more than ever, to have a plan and stick to it. The good news is, even in these uncertain times, proper planning will go a long way toward securing your retirement goals.”
The study also had similar findings to a recent study conducted by Prudential Financial that found retirement planning to be particularly difficult for members of Generation X, who exhibit more financial anxiety than their baby boomer parents.
The Allianz Life study was conducted online in February and March of 2023, and consisted of a “nationally representative sample” of 1,000 participants at or over the age of 25 with household income of $50,000 a year for a single person, $75,000 a year for a married couple and/or investable assets of $150,000.
