Rising Concerns Over Financial Stability
A recent study reveals that nearly 64% of Americans are more anxious about depleting their financial resources than about death itself.
This finding comes from the Allianz Life 2025 Annual Retirement Study, which surveyed 1,000 individuals over the age of 25. Kelly Lavigne, vice president of consumer insights at Allianz Life, noted that while this fear has been prevalent for some time, the 64% figure stands out as particularly high.
Lavigne attributes the increased anxiety to ongoing market volatility and general uncertainty in 2025. The study also highlights that more than half of Americans are concerned that inflation will erode their savings.
This worry seems warranted. According to the National Retirement Risk Index, about half of households struggle to maintain their living standards post-retirement. Morningstar’s simulations indicate that around 45% of people aged 65 and older risk running out of money.
If you find yourself among the majority worrying about whether you’ll have enough saved for retirement, consider addressing common financial pitfalls to get back on track.
1. Develop a Written Plan
Lavigne emphasizes that failing to create a clear, written plan is a common retirement error. It’s crucial to chart out various scenarios, including how to handle market downturns. Plans not only clarify your goals but also provide reassurance during uncertain times.
“There will be bumps along the way, like the current market volatility, but having a solid plan can help ease your concerns about running out of money,” Lavigne explained. Start by determining your financial target—the amount you aim to save before retiring. Don’t just focus on bare necessities; think about the lifestyle you envision for retirement and any activities you wish to pursue, like travel, which can incur additional costs.
Writing down your plan is an important first step, but it can require serious dedication. Being honest about your spending habits is crucial, Lavigne suggests.
2. Familiarize Yourself with Social Security
You can begin to receive Social Security benefits at 62, but this isn’t always advisable. Many individuals regret claiming these benefits too early.
Lavigne advises, “Just because you can receive Social Security at 62 doesn’t mean you should. Understand how it works; it typically makes up about 40% of retirement income for the average American.” Knowing the relevant regulations can help you strategize effectively and ensure you maximize this benefit, delaying your claims might result in a larger monthly payment.
3. Stay Calm
It can be easier said than done, particularly amid unpredictable market situations, but Lavigne urges against panic. “It’s important to stay focused on your plans and not let the actions of others sway your decisions.” If you see others withdrawing their funds, resist the urge to do the same. Reacting impulsively can lead to missed opportunities when the market rebounds.
“Time in the market is more beneficial than attempting to time the market,” Lavigne stresses. The toughest part of enduring long-term investments can be maintaining your position through volatility. While it’s uncomfortable to navigate down markets, it’s a normal aspect of investment cycles.
