Wave Farewell to Retirement Plans: What’s Coming by 2025!
Are you dreaming of a retirement filled with relaxation and adventure, only to find it feels like a distant fantasy? You’re not alone. A staggering number of Americans—over half—are facing the reality of retirement without a solid plan in place. Many are counting on Social Security as their main source of income, a gamble that could leave you high and dry.
This unsettling truth comes from Allianz Life’s 2024 Annual Retirement Study, which surveyed over 1,000 individuals aged 25 and older earlier this year. The findings are eye-opening: 56% of Americans lack a concrete financial strategy for their golden years. Even more concerning, nearly half (48%) are anxious about not enjoying retirement to the fullest because they fear they’ll have to live too frugally. This worry is especially pronounced for those without savings to bridge the gap between their potential Social Security benefits and their actual living expenses.
And the anxiety doesn’t stop there. A whopping 42% of respondents indicated that escalating daily costs are their top concern for retirement financial security. Additionally, 35% of Americans fret about outliving their retirement funds, while 45% are puzzled over how to withdraw money from their retirement savings to ensure it lasts throughout their lifetime.
Healthcare costs are yet another source of stress; 32% of those surveyed expressed worry about soaring medical bills. Meanwhile, 30% fear overspending during retirement and ending up broke. These are not trivial matters—they are vital concerns that need addressing.
Kelly LaVigne, vice president of consumer insights at Allianz Life, voiced her alarm over these findings, stating, “If you don’t know how you will draw from your retirement assets for income, then you aren’t ready to retire. So much of retirement preparation focuses on accumulating assets—and that’s important—but it is critical to understand how those assets will fund your life after you retire. Making informed choices about when to claim Social Security and assessing your available resources is essential.”
More Eye-Opening Insights on Retirement
This isn’t the first study to uncover these alarming trends. Many Americans nearing retirement find themselves lacking sufficient funds to support their future lifestyles, and a troubling number will have to rely almost exclusively on Social Security for income.
Jim Davis, senior wealth manager at Texas-based Aspen Wealth Management, shared his thoughts with Newsweek about this pressing issue. He noted, “In previous generations, retirement was often viewed as a definitive endpoint. People would work until a certain age and then completely exit the workforce. Today, more retirees are adopting a phased approach, gradually reducing their hours instead of stopping entirely. This shift is driven by financial necessities, longer life expectancies, and a desire to remain mentally and socially engaged.”
His observations align with a recent survey from Edelman Financial Engines by Greenwald Research, revealing that one in three respondents believe they may never fully retire and will need to work at least part-time in their later years.
The Pew Research Center highlighted another sobering statistic in their 2023 report: about one in five Americans aged 65 and older were still in the workforce, nearly double the rate from 35 years ago.
Perhaps the most striking revelation came from a poll of 2,000 American retirees conducted by financial advice service The Motley Fool. In the wake of the 2025 2.5 percent cost-of-living adjustment for Social Security, they discovered that 50% of retirees are considering going back to work due to financial shortfalls.
