Retirement should be a time to relax — not a looming fear that you lose sleep over. But a powerful new study from Allianz Life reveals nearly two-thirds of Americans are more afraid of outliving their savings than of death itself.
Gen Xers are especially anxious, with 70% saying an empty bank account scares them more than the end of life. These numbers reflect a growing crisis — and the urgent need for action.
1. Why running out of money now tops the fear list
Several factors are contributing to increased uncertainty about retirement among Americans. High inflation has eroded purchasing power, diminishing the value of savings and making everyday expenses more burdensome.
Concerns about the stability of Social Security have also intensified, with many questioning whether future benefits will suffice to support their retirement needs. Additionally, rising tax burdens are further straining fixed incomes, leaving many to worry about their financial security in retirement.
2. Most Americans are dangerously underprepared
According to the 2025 Northwestern Mutual Planning & Progress Study, as reported by CBS News, Americans believe they need $1.26 million saved to retire comfortably.
However, the median retirement savings is just $87,000, based on the Federal Reserve Board’s Survey of Consumer Finances. This significant gap highlights the financial challenges many face as they approach retirement.
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3. Gen Xers are the most worried generation
Generation X, born between 1965 and 1980, is expressing significant concern about their financial readiness for retirement. According to the 2025 Allianz Life Annual Retirement Study, 70% of Gen Xers fear running out of money more than death — a sentiment echoed across multiple reports.
Several factors contribute to this anxiety:
- Financial Pressures: Many Gen Xers are part of the “sandwich generation,” simultaneously supporting aging parents and children, leading to increased financial strain, according to MarketWatch.
- Retirement Savings: A significant portion lacks confidence in their retirement preparedness. A Fidelity Investments survey found that 45% of Gen Xers are not confident in their ability to retire when and how they want, as reported by the New York Post.
- Economic Factors: Persistent inflation, rising taxes, and concerns about the stability of Social Security benefits further exacerbate retirement uncertainties, according to Allianz Life.
These challenges underscore the importance of proactive financial planning for Gen Xers who hope to secure a stable retirement future.
4. You don’t need $1 million to retire well
Financial experts stress that retirement success depends more on managing expenses and income than hitting a magic number. Replacing 70% to 80% of your working income is a more realistic benchmark, according to Investopedia.
Extra income sources, like part-time work or annuities, can also provide stability — with Thrivent noting that annuities offer guaranteed lifetime income and part-time employment can help bridge retirement income gaps while keeping retirees active and engaged.
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5. Small moves now can change your future
You don’t have to overhaul your entire financial life overnight. Start by boosting contributions to retirement accounts, delaying Social Security if possible, and exploring tax-advantaged strategies.
Even small increases in savings can compound powerfully over time.
6. Professional advice can turn fear into strategy
Fear is natural — but ignoring it won’t solve anything. A trusted advisor can help you evaluate your options, from inflation protection to withdrawal strategies.
With the right support, you can build a retirement that’s not just survivable, but sustainable.
The fear is real — but so is your ability to fix it
Running out of money in retirement is a terrifying thought, but it doesn’t have to be your reality.
With smart planning, multiple income streams, and expert guidance, you can build financial security that outlasts your working years — and your fears.
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