Episode 2398
This week on the Retirement Quick Tips Podcast, I’m talking about a study from the Allianz Center for the Future of Retirement that found something striking: 64% of Americans are more worried about running out of money in retirement than they are of death itself.
Today…So far this week, I’ve talked about how you can address the very common fear of running out of money in retirement. There are a number of strategies you can use, but their effectiveness really depends on how close you are to retirement.
For example, saving more makes the biggest impact the farther away you are. So if I’m talking to someone my age—around 40—the advice is simple: reduce expenses, cut out the things that are keeping you from saving more, and then be more aggressive with how much you save. That alone can take you a long way toward reaching your goal of accumulating enough so you don’t have to worry so much about running out of money in retirement.
But if you’re closer—say one to five years out—saving more won’t move the needle nearly as much. At that stage, the best solution is usually just to work a little bit longer. A couple extra years of work can have an outsized impact on retirement security.
Now, what we haven’t yet addressed this week is: what if you’re already retired? Many baby boomers in this survey, all over 60 now, are in that exact situation. They’re still worried—rightly so—about running out of money. But it’s too late to save more, and too late to delay retirement. At that point, the one arrow left in the quiver is maintaining a safe withdrawal rate. That is the key to not running out of money once you’re retired.
Published on 2 days, 18 hours ago
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