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according to Allianz Life64% of Americans surveyed fear losing their money more than dying.
Those surveyed cited high inflation, taxes and uncertainty around social security as the main reasons for their fear. If you’re afraid of going broke in retirement, here are seven ways to protect yourself.
1. Plan to live longer
It’s great to live a long, full life, but not when you’re living it at financial expense. As advances in medicine continue, it is not unreasonable to think that more people will live longer. A 65-year-old man can expect to live to 84, and a 65-year-old woman can expect to live to 87. social Security Administration (SSA).
This could mean that today’s retirees need retirement assets to cover living expenses for up to three decades. Start planning now to avoid ruin.
2. Increase annual savings
How much you save has a direct impact on preparing for retirement. Working Americans still have time to increase their savings. Many 401(k) plans allow contributions to increase at specified intervals.
Consider increasing contributions annually or after each raise. Be sure to contribute enough to receive full salary from your employer.
3. Don’t ignore catch-up options
The IRS allows Americans age 50 and older to make additional catch-up contributions to IRAs and 401(k) plans. Eligible Americans can contribute an additional $1,100 to Roth and traditional IRAs and an additional $8,000 to 401(k) or 403(b) plans for 2026. vanguard.
The amounts may seem insignificant, but the potential growth is substantial.
4. Be strategic about Social Security
Americans can claim Social Security benefits starting at age 62. If you need money to live, this is understandable. However, for those who continue to work or can rely on other resources, delayed benefits may be beneficial.
Waiting until full retirement age (FRA) may increase payouts. Not only does your payment increase, but it has a greater impact when you receive a cost-of-living adjustment.
5. Attack Loan
Credit card debt can be suffocating, especially in retirement planning. According to Allianz, those surveyed cited credit card debt as the second most common factor limiting retirement savings.
It’s best to prioritize paying off credit card debt then other consumer debt. Eliminating debt instantly leaves more money for savings, no matter your age.
6. Plan for life’s curveballs
Life is unpredictable, and that doesn’t change in retirement. Having a fully funded emergency fund is a good way to protect against uncertainty. Experts recommend saving for at least six months of living expenses.
Don’t forget health care costs, too. According to this, the average retiree can expect to spend $172,500 on medical expenses Loyalty. If you have access to a health savings account (HSA), this can be a good, tax-efficient way to start saving.
7. Be tax-savvy
Retirement planning isn’t just about growing assets. Taxes also play an important role in protecting your resources. Working with a tax advisor is a helpful way to avoid taxes and penalties as much as possible.
A tax advisor can diversify your taxes to optimize your portfolio and limit taxable liability. You don’t need to wait until retirement age to do this; Starting early may help.