Will You Outlive Your Money?

August 20, 2025 · Finance

Retirement is supposed to be a time of freedom—when we get to enjoy the fruits of our labor, explore passions, and spend more meaningful time with loved ones. But for many people, one fear looms large: What if I run out of money? This anxiety is so common that financial planners have coined it “FOOM”—Fear of Outliving Money—and it’s one of the top reasons people delay retirement or avoid spending even when they can afford to.

According to a study by the Employee Benefit Research Institute, more than 70% of retirees worry about depleting their savings. But here’s the truth: you don’t need to let that fear control your future. With smart planning, the right mindset, and practical tools, you can feel confident about your financial life—and live boldly at any age.

Understanding the Root of the Fear

This fear doesn’t always stem from reality. Sometimes it’s a lack of information, uncertainty about the future, or simply growing up with messages like “money doesn’t grow on trees.” As retirement spans stretch longer—often 25–35 years or more—many of us haven’t been taught how to plan emotionally or financially for that longevity.

A 2021 Allianz Life study found that nearly half of Americans fear running out of money more than they fear death. But that fear often reflects a lack of preparation—not a lack of resources.

So, how do we break the cycle of fear and start building financial peace of mind?

Action Steps to Replace Fear with Confidence

  1. Know Your Numbers
     Start by getting clear about your expenses, income sources, and savings goals. Tools like NewRetirement and SmartAsset’s Retirement Calculator can help you visualize whether your savings, pensions, Social Security, and investments will sustain your lifestyle.

  2. Build a Flexible Spending Plan
     You don’t need a strict budget—you need a flexible plan that can adjust over time. Apps like Tiller Money or YNAB (You Need a Budget) help you track your income and expenses so you stay in control without feeling restricted.

  3. Secure Lifetime Income Sources
     Consider annuities, part-time work, or rental income to supplement your retirement savings. The more predictable income you have, the less likely you’ll feel financial stress. Learn more about annuity options from ImmediateAnnuities.com.

  4. Don’t Underestimate the Power of Work You Love
     Many people choose to work part-time or freelance during retirement—not just for money, but for purpose. According to the Transamerica Center for Retirement Studies, 55% of workers envision a phased retirement. Purposeful income can buffer your savings and your well-being.

  5. Keep Learning and Adjusting
     Retirement planning isn’t a one-time event. Check in with your plan yearly and stay informed. Join educational programs through Coursera, your local community center, or online financial education sites like Morningstar.

  6. Work With a Fee-Only Financial Advisor
     A fiduciary advisor will help you make decisions in your best interest—without selling products. Use sites like NAPFA.org or XY Planning Network to find a certified planner near you.

Shift the Focus: From Scarcity to Security

“You must gain control over your money, or the lack of it will forever control you.” – Dave Ramsey

It’s not just about having more—it’s about trusting your ability to manage what you have. Developing a mindset of abundance doesn’t mean spending freely; it means knowing that you’ve built a system that supports your needs and dreams.

Research shows that having a plan reduces anxiety. A 2022 Fidelity study found that retirees who had a written retirement income plan were more than twice as likely to feel confident about their financial future compared to those without one.

Don’t let fear stop you from living a vibrant, adventurous, and fulfilling life.

Let’s Reflect Together

What’s your biggest fear when it comes to money and retirement—and is it rooted in fact or assumption?
 Have you created a plan that adapts to change, or are you still relying on a static goal number?
 What could financial confidence unlock for you—a trip, a new passion, a meaningful contribution?
 Are you tracking your financial health as often as you track your physical health? Why or why not?

The fear of running out of money is real—but it doesn’t have to define your retirement. Join the conversation in the Age Brilliantly Forum to share your insights, ask questions, or learn how others are planning for abundance over anxiety. Your journey may help someone else step boldly into their future too.