'Daunting task': Americans are more scared of going broke than dying — with 'forgotten' generation most spooked as they face high inflation and shrinking Social Security support

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.

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.