May 2, 2025
More Americans are afraid of going broke than they are of dying.
A new study by Allianz Life lays it bare: 64% of Americans say they fear running out of money ahead of death itself. Furthermore, 62% say they’re not saving as much for retirement as they’d like.
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High inflation, shrinking Social Security support and rising taxes are driving this fear. Inflation was the top concern, cited by 54% overall and 61% of baby boomers, more than millennials (56%) or Gen X (55%).
“With Americans living longer in retirement and facing risks like market volatility, creating a financial strategy so that your money lasts your lifetime is a daunting task,” Kelly LaVigne, Allianz Life’s Vice President of Consumer Insights, said in a press release. “A strong retirement strategy will go beyond a dollar amount in the bank — it will also address how you will create a reliable income stream from your assets.”
Why anxiety is so high right now
The fear of going broke is most prominent among Gen X (70%) — the “forgotten” generation — who are in their 40s and 50s and fast approaching retirement. Millennials aren’t far behind at 66%, while fear among boomers, many of whom are already retired, sits at 61%.
An April 2025 report from Northwest Mutual found the average American believes they’ll need about $1.26 million to retire comfortably. That figure is down from $1.46 million in 2024.
But many Americans are well short of this target. For those aged 55 to 64 and on retirement’s doorstep, the median retirement account balance is $185,000, according to Federal Reserve data. For those aged 45 to 54, the figure drops to $115,000.
Several forces are at work. Inflation has shredded the real value of savings, making everything from groceries to health care more expensive. And Social Security — a major factor in American retirement — is looking increasingly shaky. The program’s trust funds could be depleted by 2035 — a time when many Gen X may be entering retirement — forcing possible benefit cuts, unless the government takes action.
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How to build a strong future
The good news? You don’t have to be a millionaire today to retire comfortably tomorrow. But it’s wise to start taking smart, focused action, and soon.
Start saving now, no matter how small the amount: The magic of compounding interest works wonders over time. The more you’re able to save over a longer period of time, the more compounding works in your favor. Delaying by even a few years could cost you big time down the road.
Boost your retirement account contributions: Max out your employer’s 401(k) match if you have one — that’s free money. If possible, take advantage of catch-up contributions if you’re over 50.
Prepare yourself emotionally: Many retirees aren’t undone by running out of money — they simply lose a sense of purpose. Start planning now for how you’ll stay mentally active, socially connected and personally fulfilled once the 9-to-5 grind ends, and you can be mentally prepared to make the most of your golden years.
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Chris Clark is a Kansas City–based freelance journalist covering personal finance, housing and retirement. A former Associated Press editor and reporter, he writes plainspoken stories that help readers make smarter financial decisions.
