Half of Retirees Fear Running Out of Money. Here Is What Actually Fixes That
Half of Retirees Fear Running Out of Money. Here Is What Actually Fixes That
A 2026 MetLife study found half of retirees are afraid of outliving their savings. The fear is rational. Here is the structural reason why, and what actually addresses it.
The fear is common. The reasons are structural.
MetLife's 2026 "Paycheck or Pot of Gold" study found that half of retirees are afraid of running out of money before they run out of time (MetLife Newsroom, 2026). The study points to two converging pressures: rising healthcare costs and increasing life expectancy. Both are pushing the number of years retirement income needs to last further than most retirement plans were designed for.
A 30-year retirement is no longer unusual. Someone retiring at 65 has a real chance of living into their mid-90s. Most retirement portfolios, especially those built around a traditional withdrawal strategy, were not designed to guarantee income for three full decades. Market downturns early in retirement, unplanned healthcare costs, and longevity all compound the risk.
This is not a confidence problem. It is a structural gap between how most portfolios are built and how long retirement actually lasts.
The retirement income gap behind the numbers
Social Security replaces roughly 40% of pre-retirement income for the average earner. The rest has traditionally come from personal savings and market-based withdrawals.
Market-based withdrawals carry a risk that guaranteed income does not: if the market underperforms in the early years of retirement, a portfolio can be depleted faster than planned, even if the long-term average return looks fine on paper. This is often called sequence-of-returns risk.
Half of retirees fearing they will run out of money is a signal that this gap is well understood by the people living through it, even if it is rarely discussed in those terms.
| Social Security replacement rate | ~40% |
| Remaining gap | Savings + withdrawals |
| Withdrawal risk exposure | Sequence-of-returns risk |
How a guaranteed income floor addresses it
A guaranteed income floor is not a replacement for a portfolio. It is a baseline, income that continues regardless of market performance or how long retirement lasts.
Social Security
The foundation of most retirees' guaranteed income, replacing roughly 40% of pre-retirement income on average.
Pension (where available)
A second guaranteed layer for retirees who have one, continuing regardless of market conditions.
Fixed Annuities
Fixed annuities offer guaranteed rates and can convert a portion of savings into an income stream that lasts for life.
A guaranteed floor is not an all-or-nothing decision
- Covering essential expenses with income that cannot run out
- Layering guaranteed income alongside a market-based portfolio
- Fixed annuities offer guaranteed rates and principal protection
- Putting all retirement savings into any single product
- Treating a guaranteed income floor as a full retirement strategy on its own
- Assuming terms are identical everywhere — availability and terms vary by state
- What combination of Social Security timing and income products fits my situation?
- How much of my savings should go toward guaranteed income?
- What are the state-specific terms for the products available to me?
Common questions
1 What did the MetLife study actually find? ▼
2 Is the fear of running out of money in retirement rational? ▼
3 What is a "guaranteed income floor"? ▼
4 Do I need to buy an annuity to fix this fear? ▼
5 How much of my savings should go toward guaranteed income? ▼
6 Does AnnuitiesHQ sell annuities? ▼
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Compare Annuity Rates →This content is for educational purposes only and does not constitute financial, investment, tax, or legal advice. Annuity products vary by carrier and state. Consult a licensed financial professional before making any financial decisions. AnnuitiesHQ.com does not sell annuities or provide investment advice.