Majority Of Americans Fear Financial Insecurity In Retirement More Than Death, Study Finds
Amid rising inflation, tax pressures, and uncertainty over Social Security benefits, most Americans fear financial ruin in retirement more than they fear death. As they grapple with the realities of longer life expectancies, a growing number say they would rather not live to 100.
According to a new study by the Nationwide Retirement Institute and the American College of Financial Services, only 29% of US adults wish to reach the century mark. The primary reasons behind this reluctance are fears of financial insecurity and declining health in old age. Alarmingly, nearly three out of four Americans worry they'll outlive their savings, the survey revealed.
According to a news release, the research, which explores the financial implications and consumer sentiment related to rising life expectancy, highlights just how fragile the equation can be. According to the college's research, extending a retirement by just 5 years from 30 to 35 years increases the risk of depleting savings by a striking 41%, based on historical market returns. And that risk only intensifies as lifespans continue to lengthen, particularly among healthy, higher-income retirees.
A companion consumer survey from the Nationwide Retirement Institute shows most Americans are underestimating both their chances of living to 100 and the financial demands that kind of longevity brings. In fact, only 29% of respondents said they want to live that long, citing concerns about declining health and deep financial anxieties. Roughly three in four fear they'll run out of money before they run out of time.
Today's volatile economic environment is raising the stakes even higher. According to the joint research, two out of five non-retired Americans (40%) now say they plan to delay retirement due to inflation. And the math is sobering when factoring in lower projected 10-year portfolio returns: Extending retirement by just five years increases the risk of running out of money by more than 300% according to the college's analysis.
These findings send a clear message - retirement planning needs a major reset. Both consumers and advisors must shift their mindset, prioritising longevity risk and placing a stronger emphasis on guaranteed income strategies that can weather uncertainty.
"Too many people underestimate how long they'll live - and that blind spot can seriously undermine their financial security," said Michael Finke, PhD, CFP, professor of wealth management, director of the Granum Centre for Financial Security at The American College of Financial Services and co-author of the study. "We consistently see that those who plan for longevity feel more confident about retirement. The key drivers of that confidence? Working with an advisor, having access to guaranteed income, and building a plan that's designed to last."
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