67% Fear Running Out of Money More Than Death-Why Retirement Spending Stress Is About to Spike

Fear of depleting savings is overtaking fear of death

This is becoming less a portfolio-anxiety story than a withdrawal-psychology story.

Just over two-thirds of Americans worry more about running out of money than death, up from 57% in 2022. That shift matters because the mental burden is moving from "Did I save enough?" to "Can I spend what I saved without panic?" The answer looks increasingly uncertain. Even before people retire, 71% of working Americans expect to be reluctant to spend money in retirement.

The timing sharpens the risk. This year, roughly 12,000 people a day are turning 65, more than at any point in history. Many are not arriving with the cushion they expected. Among the largest boomer cohort entering retirement, 52.5% have less than $250,000 in retirement assets. When that many households enters retirement, contraction is a likely response.

Pre-retirees are anchoring to a shorter runway than retirement actually requires

Retirees and pre-retirees are not just worried about market swings; they are worried about time. Pre-retirees now expect their savings to last only 15 years after retirement, down from 19 years just four years ago, even though many are likely looking at 25 to 30 years of retirement expenses. That gap can make savings feel shorter than the retirement years they actually have to fund.

Shorter perceived runway can tighten spending

That perception matters because it changes behavior. When people believe their savings window is shrinking, they are more likely to manage for survival rather than for durable income. Market declines then hit harder emotionally. When retirement accounts fall, 57% feel anxious about their future financial well-being. In that state, a drawdown can look less like volatility and more like a spending cutoff, making people more likely to cut cash outflows first.

The million-dollar benchmark can exaggerate anxiety

The famous million-dollar benchmark is more marketing than math, and advisers say it can create unnecessary stress. That does not mean retirement anxiety is unfounded. Even if markets stabilize, retirees can still tighten their belts because health care expenses, home insurance, and moving costs can rise in unpredictable ways.

Planning gaps and work creep are the clearest behavioral signals

That anxiety is showing up where investors should watch it: in accumulation habits, income design, and whether retirees can stick to a spending plan when uncertainty rises.

Fear is spreading beyond the under-saved

Among pre-retirees within five years of retirement who are enrolled in a defined contribution plan, 58% worry about running out of money. Just as important, 51% of retirees with money remaining still worry about that outcome, up from 30% less than a decade ago. That suggests "enough saved" does not automatically lead to calmer spending.

The planning gap helps explain why. 48% do not have a written financial plan. Without a withdrawal framework, households are more likely to let emotions set policy. Bad market news can then trigger a spending freeze or forced selling.

Return-to-work signals matter

There is also an early behavioral signal in labor-force behavior. One-third of newer retirees are thinking about going back to work, and half cite fear of running out of money as the top reason. If that trend grows, it would be a sign that cash-flow anxiety, not just market nervousness, is starting to shape retirement behavior.

Watch for:

• rising demand for guaranteed-income solutions in DC and IRA decisions
• weaker discretionary spending near or just after retirement
• adviser conversations shifting from growth allocation to income-first withdrawal design

The practical implication is straightforward: the edge is not simply in owning more equities. It is in designing income streams that reduce withdrawal stress and help retirees keep spending on time when markets turn volatile.