For many older Americans, the state of retirement looks pretty dire. According to a new survey by Clever Real Estate, a majority say the U.S. has a retirement crisis, and more than half worry they’ll outlive their savings. In perhaps the most alarming finding, 43% admit they’d rather die than run out of money.
This pessimism likely stems from the fact that retirees have saved a fraction of what they believe they’ll need to live comfortably. Even as financial experts urge people to start saving for retirement early, today’s needs often take precedence over tomorrow’s.
“It stands out that people know how much they need but aren’t able to get themselves to that level of retirement assets,” said Melanie Musson, an insurance and finance expert at Clearsurance.com.
Adding to the worry are rising prices and concerns about cuts to government services such as Social Security and Medicare. Altogether, it’s easy to see why older Americans are feeling more than a little blue about their so-called Golden Years.
Retirees vs. Today’s Economy: Are Their Fears Realistic?
The economy hasn’t been kind to retirees in recent years, with the consumer price index — which measures how quickly prices are rising for everyday goods and services — up 26% since the COVID-19 pandemic. Necessities have increased even more: car insurance is up 56.1%, utility gas service is up 48.8%, and electricity is up 40.4%.
Such price hikes weigh more heavily on someone with a fixed or semi-fixed income. Retirees with a mortgage have been squeezed even tighter. Monthly owner costs rose 3.8% from 2023 to 2024, making it harder to afford a house.
“These are categories retirees can’t suddenly decide to cut back on,” said Des Cooney, a registered professional investment adviser and owner of Axis Financial Consultants.
While inflation has cooled since its peak in 2022, about 66% of retirees surveyed believe the higher prices have erased the value of their savings. Nearly 60% fear their retirement financial strategy isn’t keeping up with the added costs from tariffs. In October 2025, the nonprofit Tax Foundation shared that tariffs have raised overall retail prices by 4.9 percentage points.
Compounding older Americans’ financial anxiety is their concern about the continued funding of Social Security and Medicare. More than half of those surveyed said they felt more pessimistic about the future of Social Security than they did a year ago, with 36% expecting benefits to run out in their lifetime.
Experts say that while these fears are valid, the more realistic situation may not be so dismal. Historically, changes come through gradual adjustments, not outright benefit eliminations.
“Social Security and Medicare face well-documented financing challenges, yet they are deeply embedded programs with strong public support,” Cooney said. “That said, retirees are right to assume that these programs may not cover all expenses, particularly health-related ones.”
What Retirees Think They Need … and What They Have
Clever’s survey makes one thing clear: people simply don’t have a good understanding of how much money they’ll need in retirement — or how to save it. Respondents believe new retirees need $823,800 to live comfortably in 2026. That’s about 35% more than the $580,310 they believed retirees needed when surveyed a year ago.
While there’s no magic number, Musson said most retirees need more than $1 million to live comfortably, though that largely depends on a person’s lifestyle and cost of living. Spending patterns are a more reliable indicator than portfolio totals, as many retirees expect to live longer and be more active.
What’s troubling is that survey respondents have saved only a fraction of this — just $288,700 on average. Only about 23% had $500,000 or more saved when they retired.
“You can determine what you should do to reach your goals, but getting there requires you to contribute to retirement every month for many years,” Musson said. “What ultimately happens is that the immediate needs of an individual or a family take precedence over the future need for retirement income. So, bills are paid, but savings aren’t built.”
Ilir Salihi, founder and senior editor of IncomeInsider.org, said his rule is to use fixed-income sources like Social Security and pensions to cover essential spending. Then use a sustainable draw rate — say, less than 4% — on investments to cover the rest.
Salihi is 45 but aims to retire within the next decade. He says his retirement fund is “modest but workable” if he can pay off his mortgage, maintain his current savings rate, and keep a small part-time consulting gig. He also expects to make small lifestyle changes, such as driving paid-off cars longer and traveling during off-peak seasons.
“If I could do things differently, I’d have started way earlier,” he said. “I started in my mid-20s with tiny 401(k) contributions, but I think I didn’t get serious about maxing my employer match and automating raises until I was in my thirties.”
Options for Retirees Who Run Out of Money
Running out of money is a serious concern for today’s retirees. Nearly half of older Americans aren’t sure they can sustain their current financial situation for the rest of their lives. About 37% doubt they can make it for the next five years, and almost 25% say they may not make it through the next year.
Retirees who haven’t saved enough could face some difficult decisions to cut costs. Downsizing or finding less expensive living arrangements is often the first step. For instance, homeowners can sell to a cash-buying company if they need a quick transaction. A reverse mortgage is another option that lets people stay in a home they otherwise can’t afford.
“The biggest takeaway for those facing tight finances in retirement is to treat your home as a financial tool when the need arises, and make decisions that protect both your cash flow and long-term stability,” said Douglas Van Soest, owner and real estate entrepreneur at Storology Storage.
For those still in the workforce, the lesson is clear: start saving for retirement now. Cooney recommends a financial plan that treats programs like Social Security and Medicare as a foundation for your retirement fund, not a complete solution, as these programs are unlikely to keep up with rising costs.
Beyond that, experts advise young workers to maximize their employer’s 401(k) match on every paycheck. Automating a set percentage of income into a savings or retirement account is also helpful, as it helps the investment portfolio grow with pay raises.
“Keep it simple and keep it boring,” Salihi said. “That’s how you build real, durable wealth.”