Mar 26, 2025
Thinking about the end of life isn’t exactly pleasant, but there’s a bigger fear among Americans: running out of money.
A LiveCareer survey found that 61% of those still working are more scared of retirement than death. This sentiment could be growing in popularity because of increased life expectancy and the concern from many about whether they’ll have enough saved.
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In 2022, the average life expectancy was around 77 years old, while the average retirement age was 61. Meaning, you’ll need to be sure you have enough saved to fund 16 years after you stop working.
The fear about money is real: More than half of adults aged 50 and older, when asked in an AARP survey, say they’re worried they won’t have enough money in retirement, with 42% of men, in particular, describing their financial situation as “fair” or “poor.”
Even if you believe you’re on the right track, it’s important to have a clear plan in place to make sure you have enough money for retirement. Here are three best practices to help ease your fears.
Create a retirement spending plan
Having a clear picture of your finances will show you where you currently stand and what you can do to make sure you have enough during retirement.
Start by listing your income sources, like an employer-sponsored pension plan, Social Security, taxable brokerage or individual retirement accounts (IRAs). Also, think about any rules around when you can withdraw from these accounts and what you currently have in each one.
Next, you’ll want a good estimate of what your expenses will be in retirement. Then, take a look at your retirement income sources to see whether the amount you expect to withdraw matches it.
Many use the 4% rule as a guideline for how much they can withdraw without completely depleting their retirement accounts.
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If you don’t have enough in these accounts right now, see how much you still need to save and create a realistic goal to get there. Or, if you’re close to retirement and saving more sounds daunting, part-time work may be an option.
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Set aside reserves for rising costs
Factoring in rising costs, from medical care to inflation, may sound scary, but is necessary. Opening a savings account to hedge against short-term rising costs could help ease your fears.
For example, you love a soft-boiled egg for breakfast but the price for them has gone up 36%. Instead of eating something different, you can dip into this buffer account, temporarily, while you take the time to reassess your overall budget.
As for long-term rising costs, consider creating a plan to access your retirement savings in phases.
When initially retiring, you may be able to rely on Social Security and some of your pension income, for example. When you reach your late 70s or an age where you anticipate more health care costs, you can then start to access other investments, like your IRAs.
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Be sure to regularly review your investments — just like your spending plan — to be sure your plan remains solid. Working with a financial adviser may be helpful.
Build a vision for your retirement years
Having your finances in order shouldn’t be the only consideration when planning for retirement. You’ve worked hard for decades — you deserve to spend the rest of your days being happy, too.
Whether you feel the same as many retirees, who can be scared of becoming disconnected after they leave their career behind, it’s important to make a plan.
Take the time to get as detailed about your goals and dreams as you need to in order to continue feeling connected. Do you want to volunteer with local charities? Schedule weekly dinners with friends or family? Join guided travel tours?
Brainstorming what your ideal lifestyle might look like in retirement can also help you figure out what you need to do before retirement to turn your vision into a reality.
Considering that almost 40% of Americans view their job as a large part of their identity, according to a Pew Research Center survey, finding different ways to continue feeling a sense of purpose and belonging is key.
It could be a great time to think about hobbies you can start now, or part-time work you could take on after, to help ease the transition into full retirement. This way, when you’re ready to fully retire, it won’t feel like such a drastic change.
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Sarah Li-Cain, AFC is a finance and small business writer with over a decade of experience.
