Retirement is meant to be a time of rest and enjoyment, but for many Americans, it’s a source of anxiety—so much so that some fear it more than death itself. A recent LiveCareer survey revealed that 61% of working Americans are more afraid of retiring than dying, and 64% fear it more than getting divorced.
This widespread fear highlights deeper concerns about financial security, identity, and the challenges of planning for the future in an increasingly expensive world.
Financial Fears Loom Large
The financial picture for many older Americans is grim. According to an AARP survey, 20% of Americans aged 50 and older have no retirement savings, while 61% worry they won’t have enough money to retire.
Baby boomers—those born between 1946 and 1964—will all be aged 65 or older by 2030. By 2040, about 78.3 million Americans will fall into this age group, creating a growing demand for financial solutions for retirees.
Adding to the pressure is the lack of workplace retirement plans. AARP notes that Americans are 15 times more likely to save for retirement when they have access to a workplace plan, yet nearly half of all workers do not have this option. The problem is even more common among low-wage workers earning less than $37,000 annually, who are significantly less likely to have retirement savings programs.
Beyond Money: Identity and Health Concerns
While finances play a significant role, the fear of retirement goes beyond money. Psychology Today emphasizes the loss of identity that many face after leaving the workforce. For decades, careers often define purpose and social interactions, and stepping away can feel like losing a piece of oneself.
Health challenges are another major concern. Studies by the University of Arizona highlight fears about losing independence due to age-related health issues, such as falls and chronic conditions, which can diminish quality of life in retirement.
How Much Do Americans Really Save for Retirement?
The U.S. Department of Labor states that the average American spends about 20 years in retirement, yet only half of Americans have calculated how much money they’ll need to sustain themselves. Compounding this issue are financial hurdles like student debt, rising rent, car loans, and everyday living expenses, which make saving even more difficult.
CIBC reports that maintaining a middle-class lifestyle is now 30% more expensive than it was 20 years ago, leaving many unable to set aside enough for retirement.
We can help you create a plan for your retirement.
A Path Forward
Retirement doesn’t have to be a time of fear. Financial education, better access to workplace retirement plans, and exploring tools like reverse mortgages can help alleviate some of these anxieties. Addressing non-financial concerns, such as finding new hobbies, strengthening relationships, or volunteering, can also help retirees redefine their sense of purpose.
With thoughtful planning and access to the right resources, Americans can transform their fears about retirement into hope for a secure and fulfilling future.
Contact Us to start planning for your retirement. Your consultation is free.
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