What Happens If You Outlive Your Retirement Savings?

For many retirees, there’s a silent fear that often goes unspoken—but it’s very real:

What happens if I outlive my savings?

With Americans living longer than ever, the risk of running out of money in retirement is no longer a rare possibility. It’s a growing concern known as longevity risk—and it can impact your quality of life, your independence, and even your ability to care for loved ones.

The good news? There are proactive strategies you can take today to guarantee income for life and build a retirement safety net that doesn’t run dry. Let’s explore how to protect yourself.

The Reality of Outliving Your Savings

A recent report from the Employee Benefit Research Institute (EBRI) found that nearly 40% of retirees risk depleting their savings during retirement, especially if they live into their 90s. With longer life expectancies, it’s not uncommon for retirement to last 25 to 30 years—or more.

Unfortunately, many retirement plans are built with shorter timeframes in mind. Market volatility, unexpected medical costs, inflation, and even helping adult children can erode what once looked like “enough” savings.

What Is Longevity Risk?

Longevity risk is the financial risk of living longer than expected and running out of income as a result. It’s the opposite of what most people fear in other areas of life—because while living longer is a gift, it comes with the challenge of stretching your money further.

Here’s why longevity risk is often underestimated:

• People base planning on average life expectancy, not their personal health or family history.
• Inflation can quietly erode purchasing power over time.
• Retirees often spend more early on, assuming they’ll slow down later.
• Required minimum distributions (RMDs) can deplete accounts faster than expected.

So, what happens if you outlive your retirement savings?

Without guaranteed income, you may be forced to:

• Downsize your home or lifestyle.
• Rely solely on Social Security.
• Return to work, if possible.
• Depend on family members for support.

That’s why building guaranteed lifetime income is essential.

How to Protect Against Outliving Your Savings

Fortunately, there are tools designed specifically to protect you from this worst-case scenario. The most powerful among them: annuities.

Let’s explore how smart income planning can secure your retirement.

Why Annuities Help Mitigate Longevity Risk

An annuity is a financial product that can convert a lump sum of your savings into a stream of income you cannot outlive. It’s one of the few solutions that addresses longevity risk directly.

Here’s how:

Guaranteed Lifetime Income

Whether you live to 75 or 105, an income annuity will keep paying. This eliminates the guesswork around “how long will my money last?”

Protection from Market Volatility

Unlike investments tied to the stock market, certain annuities—like fixed indexed annuities (FIAs)—protect your principal while still allowing for growth.

Optional Income Riders

Some annuities come with guaranteed income riders, which allow you to defer withdrawals for several years—resulting in higher income payouts later.

Spousal Continuation Options

Worried about leaving your spouse with nothing? Many annuities offer joint income options, so payments continue even if one spouse passes away.

Comparing Longevity Protection Strategies

Here’s a quick comparison of common income strategies:

Layering Income: A Smarter Strategy

Don’t think of annuities as your only income source. Think of them as the foundation.

Here’s a layered income plan to consider:

• Social Security – Base income, inflation-adjusted
• Annuity – Lifetime guaranteed income for fixed needs
• IRA/401(k) withdrawals – For discretionary spending
• Other assets – Legacy, gifting, or emergencies

This strategy gives you both stability and flexibility—and ensures you won’t outlive your core income, no matter how long you live.

Planning for a Longer Life = Planning for a Better One

Living longer doesn’t have to mean worrying more. The right income strategy gives you:

• Confidence in your retirement budget
• Freedom from watching markets daily
• Dignity and independence in later years
• The ability to enjoy retirement instead of stress about it

Take Action Today—Your Future Self Will Thank You

The truth is, most people don’t plan to fail. They simply fail to plan—especially for the risk of longevity. If you’re concerned about outliving your savings, you’re already ahead of the curve just by asking the right questions.

The next step is taking action.

Explore Your Options Now:

📞 Speak with a SafeMoney.com retirement specialist today—no pressure, just education.

🧑‍💼 Written by Brent Meyer, founder of SafeMoney.com. With more than 20 years of hands-on experience in annuities and retirement planning, Brent is committed to helping Americans make informed, confident financial decisions.

Disclaimer: This content is for informational purposes only and does not constitute financial, tax, or legal advice. Annuities are insurance products and may not be suitable for everyone. Guarantees are subject to the claims-paying ability of the issuing insurance company. Please consult a licensed financial professional to determine what strategies may be appropriate for your individual situation.