Survey Reveals the One Thing Americans Fear More Than Death, and the Answer May Surprise You

A recent Allianz Life survey of 1,000 US adults aged 25 and above with annual incomes of more than £37,523 ($50,000) revealed that 64% of the respondents across generations worry about running out of money in retirement than the idea of death.

With looming threats of student debt collections, withholding of government benefits, including social security and tax refunds, rising consumer prices amid high inflation, and increasing debt levels have created an atmosphere of panic among the common people.

'It's much higher right now than it has been for quite a while,' said Kelly LaVigne, vice president of consumer insights at Allianz Life. The company claims it has been surveying people on the same question about fears of death and going broke in retirement since 2022.

While estimates from Northwestern Mutual show that Americans require £945,580 ($1.26 million) to live comfortably in retirement, other studies reveal the figure is much higher than that. More worryingly, the median savings of people in their retirement accounts is £65,290 ($87,000).

The Allianz Life study also revealed that 70% of Gen Xers worry about running out of savings before passing away as retirement approaches fast for this generation. More than 50% believe fast-rising inflation is the prime cause of their fears, followed by high taxes and social security payment continuity concerns.

'For boomers who are already in retirement, inflation is a big deal because you only have a certain amount of money that you're going to have for the rest of your life,' said LaVigne.

Financial Adviser Could Help Protect and Prolong Your Life Savings

The latest stock market crash and continued volatility have wiped out 401(k) accounts alongside rising risks of Social Security benefits reduction or discontinuity. During market upheavals, people tend to deplete their nest eggs and make emotionally-charged financial decisions that impact their long-term financial goals.

Financial advisors leverage their intuition and experience to keep emotions out of the equation while chalking out financial moves to grow your money during market rallies and protect funds during crashes.

Advisers charge a fixed amount for their services or a percentage of your portfolio as fees; the first option is preferable because a percentage of profits could become a considerable amount as your portfolio grows over time.

Fiduciary financial advisers are mandated to work in your best interests and recommend investment decisions aligned with your retirement goals.

However, the biggest hurdle is finding the right adviser because it could make or break your financial future. Some consult friends and family, while others search the internet for the right fit.

If you are searching online, the National Association of Personal Financial Advisors and the XY Planning Network databases can help with fee-only fiduciary financial advisers.

Elsewhere, SmartAsset, a billion-dollar company, specialises in matching individuals with up to three vetted fiduciary advisers completely online when you complete an online retirement quiz. The company claims to match over 50,000 people with advisers every month.

However, remember to interview advisers to verify credentials, negotiate fees, understand their investment philosophy, and see if their approach suits your financial situation before partnering with one. This is important because client-adviser relationships generally last for years.