Gen X Fears Running Out of Money More Than Death—Here’s How To Combat That Fear

Most Gen Xers, or people in their 40s and 50s who are approaching retirement, worry more about running out of money than death, according to a 2025 Study from Allianz.

Seven out of ten Gen Xers are more afraid of running out of money in their lifetimes than dying compared to two-thirds of millennials and 61% of baby boomers, many of whom may already be retired.

Factors contributing to this fear are high inflation, concerns that Social Security will be inadequate, and high taxes.

Ways to Combat the Fear of Running Out of Money

Get a Financial Plan

Rather than panicking, it’s a good idea to meet with a financial planner and go through the specifics of the money you’ll need for retirement, plus your income streams and current investments.

“A good financial plan can help you see whether you’re on track or not, and what adjustments you need to make. Often, the fear is worse than the reality. But you won’t know until you run the numbers,” says Alvin Carlos, a certified financial planner and managing partner at District Capital Management.

Use Catch-up Contributions

If you are Gen X and feeling behind on your retirement savings, utilize catch-up contributions to make up some ground.

“For 2025, those 50 and older can contribute an extra $7,500 to their 401(k). That’s a powerful way to boost savings in a short window,” Carlos says.

And if you have an individual retirement account (IRA) and are 50 and older, you are eligible for a catch-up contribution of $1,000 in 2025.

There is also an even higher 401(k) catch-up contribution for workers ages 60, 61, 62, and 63: $11,250 in 2025.

Consider Part-time Work

Planning to work a part-time job in your 60s can take some of the pressure off.

“Retirement doesn’t have to be all or nothing,” Carlos says. “Working even part-time in your 60s can reduce how much you need to withdraw from savings.”

How to Save More for Retirement

Even with this fear of running out of money, 62% of Americans say they are not saving as much for retirement as they would like. Common factors keeping people from saving more for retirement are day-to-day necessities taking priority, credit card debt, and housing debt.

But it doesn’t have to be that way. Here are some tips for increasing your retirement savings.

Get Off to a Good Start

Even if it’s just a small amount, earmark some of your salary to your retirement savings.

“Start small and automate it,” says Daniel Milks, a certified financial planner and founder of Fiduciary Organization. “You don’t need perfection—just progress.”

Sign up for your employer’s 401(k) plan and decide how much of your salary to be automatically put aside for your retirement. Can you handle investing 10% or 15% of your salary? At the very least, invest enough to get your employer’s matching contribution. This is free money from your employer, so be sure to take advantage.

Get Real With Your Budget

You’ll need to take a good look at your spending and expenses. Where can you cut back and make more room for savings and investing?

“Spend some time creating a realistic budget to see what you’re currently spending. Without this, you’re likely to overspend and never have enough for savings goals,” says Jarrod Sandra, a certified financial planner and owner of Chisholm Wealth Management.

Trim your expenses and automate the extra savings into a traditional or Roth IRA.

Get Rid of Credit Card Debt

Hanging on to high-interest credit card debt drags down your finances. You’ll have more money to put toward savings and retirement without it.

“Prioritize getting out of credit card debt above all else. It’s just a killer to your financial plan,” Sandra says.

You may consider utilizing the avalanche method—which focuses on paying down the debt with the interest rate first—or the snowball method—which involves paying off the smallest balance first.

Both strategies will can help you pay down credit card debt, so use the one that works best for you.

Put Raises to Good Use

With every raise you get at work, apply it to a retirement savings plan.

“If you have an employer with a retirement plan, see if you can set up automated annual increases in your retirement plan contributions,” says Eric Maldonado, a certified financial planner and owner of Aquila Wealth Advisors. “A good goal is increasing your retirement plan contribution by 1% or more annually.”

The Bottom Line

A majority of Gen Xers, millennials, and baby boomers all fear running out of money. To fight this fear, you have to face the numbers. Review your finances and build a financial plan with the assistance of a financial planner. If you are 50 and older, you’ll want to take advantage of catch-up contributions for your 401(k) plan and IRA. Another way to ease the fear of running out of money is to ‘semi-retire‘ or work part-time in your 60s.

In addition to fears of running out of money, most Americans say they are not saving enough for retirement. To save more for retirement, scrutinize your budget. Where can you cut your spending to make more room for retirement savings? Pay off high-interest credit card debt, and apply the payments you were making to your retirement account. Increase your retirement contribution by 1% or more each year.