63% Fear Running Out of Money in Retirement – How to Make Sure You Don’t

Are you worried about outliving your savings? If so, you’re in good company. In fact, nearly two-thirds of Americans (about 63%) say they fear running out of money in retirement even more than they fear death. Here in Tulsa, we know this concern hits close to home. With rising living costs and economic uncertainties, many Tulsa-area pre-retirees are asking the same question: “Will my money last as long as I do?”

The good news is that with some planning-first thinking, you can make sure you don’t run out of money in retirement. This blog post will walk you through why so many people share this fear, what challenges you need to plan for, and how to put a solid plan in place (with the help of a CFP® professional) so you can retire with confidence.

You’re Not Alone – Retirement Worries Are Common

It’s completely normal to feel anxious about retirement. In a recent study, nearly two in three Americans said they worry more about outliving their savings than about dying. Think about that: money fears are topping even the fear of death! This widespread anxiety is fueled by several real challenges that folks in Tulsa and across the country are facing:

High Inflation is Shrinking Buying Power: We’ve all noticed prices climbing, from groceries at Reasor’s to gas for the car. Inflation spiked to 40-year highs recently, and 43% of people in one survey cited high inflation as a major factor behind their retirement fears. Even when inflation isn’t making headlines, the cost of living tends to rise over time, which can erode the value of a fixed retirement income.
Healthcare Costs Keep Rising: Healthcare is a big wild card in retirement planning. As we age, medical expenses usually increase – and healthcare costs have been rising faster than general inflation. To put it in perspective, a 65-year-old couple retiring today might need about $315,000 (in today’s dollars) just to cover out-of-pocket healthcare expenses through retirement. That figure doesn’t even include potential long-term care costs. It’s no wonder medical bills are a top concern for retirees.
We’re Living Longer (Longevity Risk): Oklahomans are living longer lives than past generations, and that’s a double-edged sword. On one hand, you get to enjoy more years of retirement; on the other, your savings needs to last longer. For example, a 65-year-old married couple has roughly a 63% chance that one of them will live to age 90. Planning for a 20- or 30-year retirement (or longer) is now a realistic necessity. Longevity is a blessing, but it does mean your money has to stretch over more years.
Social Security Uncertainty: Social Security is a cornerstone of many Tulsans’ retirement plans, but its future is a bit uncertain. Nearly a quarter of Americans worry that Social Security won’t provide as much support as they hope. In fact, current projections show that by the mid-2030s, the Social Security trust fund could be depleted, potentially reducing benefits to around 75–80% of promised levels if no changes are made. That doesn’t mean Social Security will disappear, but it may not cover as much of your expenses – especially with rising costs mentioned above.

All of these factors contribute to the fear of running out of money. It’s not “just in your head” – there are genuine reasons to be concerned. But here’s the encouraging part: understanding these challenges is the first step to overcoming them. With the right plan, you can address each of these issues and take control of your retirement security.

The Power of a “Planning-First” Mindset

When it comes to retirement, hope is not a strategy. The antidote to fear is having a solid plan. A planning-first mindset means you start with a comprehensive plan for your retirement before worrying about specific investments or quick fixes. It’s about being proactive instead of reactive. Here’s why a long-term retirement plan is so powerful:

Clarity and Confidence: A good plan will crunch the numbers and show you roughly how much income you can expect each year in retirement, and where it will come from (Social Security, pensions, investments, etc.). Instead of guesstimating, you’ll know what’s sustainable to spend. This clarity is empowering – it turns unknowns into a roadmap. As one expert put it, “A written financial plan can help ensure you are prepared... so your money can last your lifetime and help ease the concerns you have” about running out. In short, planning replaces anxiety with action steps.
Preparing for Inflation and Rising Costs: Your plan can build in assumptions for inflation – for example, expecting your expenses to increase a few percent each year. By planning for rising costs, you won’t be caught off guard. You might allocate a bigger cushion for medical expenses or choose investments that have the potential to outpace inflation over time. Knowing you’ve factored in inflation means one less thing to worry about when prices go up.
Addressing Healthcare and Longevity: A planning-first approach accounts for big-ticket items like healthcare and the possibility of a long life. For instance, you can set aside funds specifically for medical costs (maybe via an HSA if you’re eligible pre-retirement) or consider long-term care insurance. And you can model your finances out to age 90 or 95 to see how things hold up if you live longer than average. By planning for the worst-case scenario (like a 30-year retirement or high medical bills), you’ll know that anything shorter or cheaper will be easier to handle. It’s like stress-testing your future so you feel more secure.
Being Strategic with Social Security and Income: A key part of retirement planning is deciding when and how to draw income. For example, a plan can help you decide the optimal age to start Social Security to maximize your benefits, or whether it makes sense to draw from your 401(k)/IRA first while delaying Social Security for a larger check later. It can also guide how much to withdraw from your investments each year (a “safe withdrawal rate”) so you don’t deplete your nest egg too quickly. Some plans include creating guaranteed income streams – turning a portion of savings into something like an annuity (a product that provides lifetime monthly income) or other pension-like strategies. In fact, about 35% of Americans in one study said that putting some savings into a product that provides lifetime income was a top solution for alleviating the fear of running out of money. The right mix will depend on your situation, but the goal is to ensure your essentials are covered no matter what.

The bottom line is, having a personalized retirement roadmap brings peace of mind. Instead of worrying about all the “what ifs,” you’ll work through them in advance. Every time a concern pops up (like inflation or healthcare costs), you can refer back to your plan and say, “We’ve planned for this.” That sense of control is priceless.

Why Work With a CFP® Professional?

You don’t have to figure all of this out on your own. Working with a Certified Financial Planner (CFP®) professional can make the whole planning process easier and more effective. A CFP® professional is a financial advisor who has met rigorous education, exam, and experience requirements, and who commits to ethical standards to put your interests first. Here’s how partnering with a CFP® (or any qualified financial planner) can help ensure you won’t run out of money:

Personalized Guidance: A CFP® pro will take the time to get to know you – your goals, your assets, your worries, and your lifestyle. Are you hoping to travel and spoil the grandkids, or do you plan to downsize and live a quiet lakefront life? All these details go into crafting a plan that’s tailored to your unique situation. One size does not fit all in retirement planning. A CFP® will help create a personalized retirement income plan that fits you and your Tulsa family.
Expertise and Big-Picture Planning: Because of their training, CFP® professionals are well-versed in all areas of financial planning: retirement savings strategies, tax planning, insurance, estate considerations, and more. They can spot things you might miss. For example, they can help you figure out how to efficiently withdraw from investments to minimize taxes, or how to adjust your investment mix as you get older to reduce risk but still grow your money. They’ll ensure nothing falls through the cracks – from evaluating if you have enough insurance to cover medical emergencies, to double-checking that your investment strategy aligns with your retirement timeline.
An Objective Coach (with Accountability): It’s easy to procrastinate or feel overwhelmed by retirement decisions. A financial planner serves as a coach to keep you on track. They bring an outside perspective and emotional reassurance. Worried about a market downturn? Your advisor can talk you through it and adjust the plan if needed, rather than you making panicked moves. They’ll revisit and update your plan with you over time, especially if your life situation or the economy changes. It’s like having a co-pilot for your financial journey – you’re still in control, but you have a knowledgeable partner by your side.
Peace of Mind Through Professional Insight: Simply knowing you have an expert guiding you can relieve a lot of stress. You’ll get answers to questions that have been nagging you: Am I saving enough? When can I afford to retire? How do I make my money last? A CFP® can run projections using sophisticated software to show you different scenarios (for example, what if you retire at 62 vs 67, or what if your living expenses are higher than expected). This kind of insight turns nebulous worries into concrete, solvable problems. It’s very reassuring to replace uncertainty with a clear plan of action. And remember, you’re not alone in wanting help – 88% of Americans said they want to talk with a financial professional about maximizing their retirement finances. Getting guidance is a smart, common step.

By working with a professional, you’re essentially stacking the odds in your favor. You still make the key decisions, but you do it with better information and a support system. A CFP® professional’s job is to help you succeed so that you don’t run out of money and can enjoy the retirement you’ve worked so hard for.

Ready to Secure Your Retirement? – Take the First Step

At the end of the day, feeling worried about running out of money is totally understandable – but you don’t have to face that fear alone, and you don’t have to leave your future to chance. The sooner you create a plan, the sooner you’ll replace uncertainty with confidence. Imagine the relief of knowing you have a strategy for things like inflation, healthcare costs, and living a long life. It’s not about predicting the future perfectly; it’s about being prepared for whatever the future might hold.

So, what’s your next step? If you’re in the Tulsa area (or anywhere, really) and this conversation hits home, consider sitting down with a CFP® professional for a retirement planning session. In fact, why not schedule a complimentary consultation to get the ball rolling? It’s free, there’s no obligation, and it’s a great opportunity to discuss your goals and concerns one-on-one with an expert. Just click here to schedule a consultation and pick a time that works for you.

Planning for retirement can feel overwhelming, but with the right guidance and a planning-first mindset, you can turn those worries into a workable plan. You deserve to enjoy your retirement years with peace of mind. Let’s make sure your money lasts as long as you do – and that you can look forward to the future with confidence and optimism.

Ready to get started? Go ahead and schedule your complimentary consultation now, and take the first step toward a secure and stress-free retirement. We’re here to help you every step of the way. Here’s to living your retirement without fear and with the financial security you’ve earned!

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