What Happens If You Outlive Your Retirement Savings?

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Running out of money in retirement is a real risk for millions of Americans. Learn the strategies that guarantee income for life — no matter how long you live. Related Articles Retirement Paycheck: Turn Savings Into Income Reaching Retirement Savings Goals Cds Or Fixed Annuities Should You Put Your Retirement Savings Into Annuities Building a Personal Pension for Retirement Security Key Takeaways Consider guaranteed solutions to ensure a steady income stream throughout retirement. Utilize retirement calculators to assess your savings needs. Explore annuities for lifelong income protection against outliving your savings. Consult a SafeMoney certified advisor for personalized retirement strategies. Diversify your income sources to mitigate the risk of running out of money. Quick Answer Outliving your retirement savings can lead to difficult choices like reducing your lifestyle or relying on family. A lifetime income annuity offers guaranteed income, ensuring financial security no matter how long you live. SafeMoney Editorial Team  |  Reviewed by Licensed Financial Professionals  |  Updated Regularly The Reality of Outliving Your Retirement Savings With increasing life expectancies, the possibility of outliving your retirement savings is a significant concern. According to the Employee Benefit Research Institute, nearly 40% of retirees may deplete their savings, especially if they live into their 90s. This situation is exacerbated by factors such as market volatility, unexpected medical expenses, and inflation. Understanding Longevity Risk Longevity risk refers to the financial challenge of living longer than your savings can support. While living longer is a positive outcome, it requires a strategic approach to ensure your savings last. Many retirees underestimate this risk by planning based on average life expectancy rather than personal health or family history. How Annuities Mitigate Longevity Risk Annuities are a powerful tool in addressing longevity risk. By converting a portion of your savings into a guaranteed income stream, annuities ensure you receive a steady income for life. This financial product directly tackles the risk of outliving your savings, providing peace of mind and financial stability. Feature Annuities Other Investments Guaran