Blame it on an increase in longevity, stock market volatility, concerns about the viability of Social Security, rising inflation, or a combination of it all, but either way, a growing number of Americans are worried they will outlive their savings in retirement.
The worries are for good reason. Even one of those issues can erode savings, forcing retirees to stretch their money more than can easily last during what could be a more than twenty-year period.
Fears of outliving savings are getting worse this year amid uncertainty brought on by tariffs and changes to Social Security.
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According to the 2025 Protected Retirement Income and Planning (PRIP) Study, a nationwide survey of both consumers and financial advisors conducted by IPSOS, 54% of Baby Boomers and Gen-Xers are fearful of outliving their savings in retirement, up from 48% in last year’s survey.
As a result, some people are delaying retirement, collecting Social Security benefits earlier than planned, or seeking guaranteed income to give them peace of mind in retirement.
Others are realizing that they will have to save more to ensure they can live comfortably in retirement.
How much more? Seniorly, an online marketplace for senior living communities, pegs the average gap at about $115,000. That covers the difference between what older adults’ projected spending in retirement will be and what they’re likely to bring in from Social Security, savings and investments.
That gap, which Seniorly says is present in 41 states and Washington, D.C., is worse depending on where you live.
Seniorly analyzed the latest available data on life expectancy at age 65, Social Security income, household net worth and cost-of-living metrics to determine in which states retirees will see the biggest shortfalls.
The five states where you’re most likely to outlive your savings
If you live in these five states, expect to need to save a lot more, according to Seniorly’s analysis. High living expenses and health care costs are largely to blame for the shortfall between expected savings and what you’ll need to live.
#1 New York
Shortfall: $448,000
#2 Hawaii
Shortfall: $417,000
#3 Washington, D.C.
Shortfall: $407,000
#4 Alaska
Shortfall: $342,000
#5 California
Shortfall: $337,000
What you can do if you face a shortfall
If you are facing a retirement savings shortfall, there are ways to shore up money so that you can have the retirement you dreamed about.
Pushing out your retirement date can be an effective strategy. Even delaying retirement for six months or a year can have a big impact on the amount of money you can save.
Saving more in a tax-advantaged retirement account, such as a 401(k) or IRA, while you are still working (and taking advantage of catch-up contributions if you are over the age of 50) can also boost your retirement nest egg.
Downsizing once you are in retirement, cutting your budget, or considering working part-time are also effective ways to increase your cash flow in retirement.
Regardless of what you do, it’s important to go in with your eyes wide open, which means knowing your numbers.
Understand how much your lifestyle costs, how much income you’ll bring in each month and how much you have saved. The more you plan, the better off you’ll be when you do retire.
