In today’s post-pandemic era, thinking about retirement is likely to trigger one emotion above all: worry.
Inflation, market volatility and other forces have derailed retirement planning for nearly 40% of Americans, according to a recent survey of 1,000 adults ages 25 and older by Allianz Life Insurance Co. of North America.
Even worse, these folks say they do not know how to get their retirement strategy back on track.
The depth of concern among retirement savers is significant enough that 61% of survey respondents say they are more afraid of running out of money than they are of death.
Unfortunately, the situation may not get better anytime soon for many. Nearly half of respondents — 46% — say recent financial woes cause them to cut back on retirement saving or to stop altogether. These folks do not expect to return to saving larger amounts for the foreseeable future.
Angst about retirement is particularly acute among members of Generation X and millennials. While 70% of baby boomers say their financial situation is better than that of their parents at the same age, just 55% of Generation X and 61% of millennials feel that way.
Despite these concerns, a large percentage of people have not taken steps to correct their course, with 40% admitting that they have no retirement plan in place and will simply “just figure it out when they get there,” according to Allianz.
Of course, that is no way to plan for retirement. If you are struggling to build a decent-sized nest egg, check out our tips in “7 Ways to Guarantee Yourself a Steady Retirement Income.”