A recent survey has found that many Americans not only lack financial readiness for retirement, but also view it with more fear than death.

According to a national survey conducted by LiveCareer in June, about 61% of working Americans find retirement more frightening than death, with 64% deeming it scarier than divorce.

These fears are echoed by other studies that highlight the challenging realities as the population ages and lives longer.

For instance, an AARP survey from January revealed that 20% of Americans aged 50 and above have no retirement savings, while 61% worry about not having sufficient funds for their retirement.

How alarming is retirement?

By 2030, all baby boomers, those born between 1946 and 1964, will be at least 65 years old. The National Council on Aging forecasts that approximately 78.3 million Americans will belong to this age group by 2040.

Financial worries are not the only source of anxiety related to retirement.

Concerns about losing a sense of identity play a significant role, as highlighted by Psychology Today, which states that “many individuals see their job as a core part of who they are.”

Additionally, fears about health complications could impede retirees’ independence due to worries about falls and other age-related issues, according to the University of Arizona.

What financial resources do Americans need for retirement?

AARP indicates that Americans are “15 times more inclined to save for retirement” if they have access to an employer-sponsored plan. Unfortunately, about half of the workforce lacks such access.

This issue is particularly pronounced among low-wage earners, as noted by the Economic Innovation Group. Individuals making less than $37,000 per year are often without retirement plan options.

What is the current retirement savings situation?

The U.S. Department of Labor reports that the average American spends around 20 years in retirement, yet only about half of Americans have determined how much money they will need for this phase of life.

What factors contribute to retirement fears?

In addition to limited retirement plans, many Americans are struggling with “significant financial barriers,” according to the financial institution CIBC.

The burden of “student loans, high rental costs, car payments, and various other expenses” complicates saving for retirement, with CIBC noting that the cost of maintaining a middle-class lifestyle has risen by 30% compared to two decades ago.

Sources: YSL News Network reporting and research; LiveCareer; AARP; National Council on Aging; CIBC