7 in 10 Americans aged 50-60 are considering delaying their retirement over 4 major money worries — how to throw out retirement anxiety with the trash

Not having enough money for retirement

Insufficient retirement savings is a major factor in the decision to delay retirement for around half (49%) of GenXers.

The sad reality is that many are right to worry. Vanguard's How America Saves Report reveals the average retirement account balance for savers ages 55 to 64 is just $244,750. The median is even lower, at $87,571. Even the average savings can't safely produce a reasonable retirement income without running short.

The only way to overcome this fear is to save aggressively to build a bigger nest egg. Future retirees should aim to have around 10 times their final salary invested by retirement age and should automate the contributions necessary to make that happen.

Investor.gov savings goal calculators can show you exactly how much to save each month. Find your target, then adjust your spending or income until you hit it. Make automatic contributions and take advantage of tax breaks and employer 401(k) contributions to alleviate worries about going broke.

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The impact of inflation

Inflation is a serious issue, with 47% of survey respondents ages 50 and over reporting that concerns about rising prices prompted them to push back retirement or at least consider that option.

It's not surprising inflation is a big worry. In recent years, we've seen the largest year-over-year price increases in a generation. While the Federal Reserve targets an inflation rate of 2%, costs have been rising more than 4% annually since 2021 and the 2022 average inflation rate was 8.00%.

Inflation hits seniors hard because they're often on a fixed income and invested conservatively. Overcoming this fear requires careful planning.

One option is to maximize Social Security by waiting to claim benefits until age 70. By doing so, you will earn delayed retirement credits that boost benefits up to 24% (based on a Full Retirement Age (FRA) of 67.

Unlike savings, these benefits are protected against inflation. If data from a consumer price index shows third-quarter costs are higher than in the year prior, an annual Cost of Living Adjustment (COLA) happens automatically.

Not being too conservative with your investments is also helpful. Remember, it's just as risky to limit returns too much with overcautious investing as it is to be too aggressive and risk big losses.

A need for a larger safety net and more financial options

For 42% of GenXers, the lack of a safety net and limited options are understandably a big concern. After all, most people no longer have a pension to support them until they die. Plus, while Social Security is still here, benefits aren't enough for most to live on already.

Without a pension and with limited Social Security benefits, savings is the only thing standing between many seniors and poverty. It can be a struggle to figure out how to invest and spend your savings, to make it last for life when the stakes are so high.

One option is to consider buying an annuity offering guaranteed income so you don't have to worry as much about your account running dry in late retirement when you need it most. However, before doing so, you would want to consult with a fiduciary financial adviser to ensure it’s the right move.

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Worries about a recession or stock market downturn

Finally, fear of poor economic conditions is a factor prompting 31% of Gen Xers to consider delaying the day they give up their jobs.

For a generation that lived through the 2008 global recession and the 2020 pandemic, it's not hard to understand the lack of faith in U.S. economic stability. Plus, even under the best of circumstances, recessions and market downturns are part of any economy's natural cycles.

The best way to overcome this concern is with the right asset allocation. Pre-retirees should aim to save up around two years of liquid cash they can access when they need money and the stock market is performing badly. This way, they can wait out any downturn and avoid selling at a loss.

By taking these steps to overcome four big fears, you'll hopefully be much more ready and eager to leave work when retirement age comes.