Allianz Life study finds concerns about high inflation, Social Security and high taxes fuel this fear.
KEY FINDINGS:
-
63% more worried about running out of money than death
-
43% say high inflation contributes to their worry about running out of money
-
35% say putting portion of retirement savings in a product that provides lifetime income payments was a top solution to their concern about running out of money
MINNEAPOLIS, April 09, 2024–(BUSINESS WIRE)–Nearly two in three Americans say they worry more about running out of money than death with concerns about inflation, Social Security and taxes contributing to the fear, according to the 2024 Annual Retirement Study* from Allianz Life Insurance Company of North America (Allianz Life).
The worry of running out of money has increased in recent years. In 2024, 63% say they worry more about running out of money than death, up from 57% in 2022. Gen Xers are the most likely to say this with 71% more worried about running out of money than death, compared to 64% of millennials and 53% of boomers.
Recent inflation has heightened this feeling. High inflation (43%) is the most common concern contributing to worry about running out of money. Black/African American (52%) and Asian/Asian American (51%) respondents were more likely to say inflation contributes to their worry about running out of money than white (41%) or Hispanic (39%) respondents. Boomers (48%) were more likely than millennials (44%) or Gen Xers (39%) to say high inflation contributes to their concern about running out of money.
Concern about inflation was followed by Social Security not providing as much financial support as it should (24%) and high taxes (22%). Gen Xers are more concerned than other generations that not saving as much as they should for retirement would contribute to them running out of money.
“Running out of money in retirement is a scary thought,” said Kelly LaVigne, VP of Consumer Insights, Allianz Life. “That’s why it is so important to have a thorough financial strategy for retirement. A financial professional can help you figure out what strategies will work for you and write it down. A written financial plan can help you ensure you are prepared with your finances so your money can last your lifetime and help ease the concerns you have that you will run out of money.”
Americans say there are some ways they could address their concern about running out of money. Responses ranked in their top three solutions were:
-
Increase retirement savings (41%)
-
Reduce current spending and save more (38%)
-
Put portion of retirement savings in a product that provides lifetime income payments (35%)
-
Work longer and retire later (35%)
-
Put portion of retirement savings in a product that provides a balance of market protection and growth (26%)
To help manage this concerns, Americans would like to talk with a financial professional about maximizing return on their investments (88%), maximizing Social Security benefits in retirement (88%), and investing in a financial product that provides lifetime income (88%).
*Allianz Life conducted the 2024 Annual Retirement Study online survey in February and March 2024 with a nationally representative sample of 1,000 individuals age 25+ in the contiguous U.S. with an annual household income of $50k+ (single) / $75k+ (married/partnered) OR investable assets of $150k+.The study included an oversample of respondents who identified as Black/African American (416 responses); Hispanic (398 responses); Asian/Asian American (366 responses).
Allianz Life Insurance Company of North America does not provide financial planning services.
About Allianz Life Insurance Company of North America
Allianz Life Insurance Company of North America, one of the Ethisphere World’s Most Ethical Companies®, has been trusted since 1896 to help millions of Americans prepare for financial uncertainties and retirement with a variety of innovative risk management solutions. In 2023, Allianz Life provided additional value to its policyholders via distributions of more than $13.73 billion. As a leading provider of fixed index annuities, registered index-linked annuities, and fixed index universal life insurance, Allianz Life is part of Allianz SE, a global leader in the financial services industry with approximately 157,000 employees in more than 70 countries. Allianz Life is a proud sponsor of Allianz Field® in St. Paul, Minnesota, home of Major League Soccer’s Minnesota United.
This content does not apply in the state of New York.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240409652440/en/
Contacts
Sarah Hauer
(763) 765-7341
sarah.hauer@allianzlife.com
@AllianzLife
