10 Sad Reasons Americans Are Afraid To Retire (Can You Relate?)

With the largest-ever generation of Americans heading towards retirement, many Baby Boomers are apprehensive about living on a fixed income. No matter how well you've been planning for retirement, uncertain financial and political headwinds make the prospect of stopping work a scary one.

Here are 10 reasons why Americans are afraid to retire.

As the government prints more dollars, the currency's value quietly erodes. Since the start of the COVID-19 pandemic, inflation has risen 25%.

Over a 20- to 30-year retirement, your savings may no longer stretch as far as you thought, and Social Security's inflation adjustments often aren't enough to fully protect your purchasing power.

With costs continuing to rise, many older Americans are worried about running out of money. According to a recent study from Allianz, 64% of those surveyed are more concerned about being broke than about death, which is not exactly what you want to hear as you begin to live off your retirement accounts.

With the population expected to decline and an overwhelming number of citizens claiming Social Security benefits, many are skeptical that the system will remain solvent. According to the SSA's own projections, the Social Security fund is expected to become depleted by 2034, at which point there will only be enough money to pay out 81% of benefits.

That's enough to give older Americans bouts of stress and anxiety for the future of the program and their retirement income.

Healthcare costs tend to rise as you get older and require more care, and many people close to retirement age are worried about ballooning costs. According to Fidelity, a 65-year-old retiring this year would need around $172,500 for lifetime care.

That number will increase over the decades due to inflation.

The cost of owning a home continues to skyrocket at every level, from a house to a condo to a retirement community. A significant lack of housing supply has continued to drive up costs, even for older Americans.

According to a 2021 Harvard study, 11.2 million older adults reported spending more than 30% of their income on housing costs. That doesn't bode well for a smooth retirement on a fixed income.

Getting out of debt is already stressful enough, even with a full-time job, but it becomes even more nerve-racking when you're on a fixed income.

Americans are accumulating debt at an unprecedented rate, and approximately 70% of adults over the age of 50 are carrying some form of debt — not an ideal situation for a stress-free retirement.

Since many would-be retirees have substantial portfolios in the market, any sudden market crash could significantly erode their retirement accounts. This is known as a sequence of return risk, where you're forced to sell your assets after the market has dropped.

The continued volatility of the markets has many people on edge, as it could make retirement much more difficult.

With an uncertain job market, many older Americans struggle to find employment after being laid off. A variety of factors make finding a job more challenging for people over the age of 50, with some never securing steady employment again.

This forced early retirement can deplete savings during a crucial time for retirement accounts.

Many people nearing retirement worry about losing their sense of purpose after their career ends. According to a study by AARP, 25% of retirees struggle to find meaning after retiring from work.

While the idea of a permanent vacation may seem appealing at first, a life devoid of anything meaningful can become dull and unfulfilling after a while.

As extreme weather becomes more common, older Americans worry about hurricanes, floods, and wildfires disrupting their retirement plans.

Over half of those surveyed by Allianz cite concerns about rising home protection costs, potential financial and personal losses, and health risks from severe weather.

Retirement fears are very common for Americans and for good reason. The current economic uncertainty, market volatility, inflation projections, and a potential loss of purpose in retirement are all valid concerns.

Having a retirement plan can ease financial worries. Goldman Sachs found 74% of retirees with a plan were satisfied with their income, versus 43% without. Now more than ever, it's crucial to build a robust plan that covers both expected and unexpected costs on a fixed income.