Retirement Panic Is Real, But Here’s How You Can Replace It with a Plan

Let’s be honest retirement is scary for a lot of people. In fact, 64% of folks are more worried about retirement than divorce, and 61% are more anxious about it than death. That’s not surprising. When you’ve worked your entire life, the idea of flipping the switch and relying on your savings can feel like jumping off a cliff without a parachute. But here’s the good news: You don’t have to let that fear control your future.

We’ve seen thousands of cases on Your Money, Your Wealth, and the biggest cause of retirement anxiety almost always boils down to the same thing no income plan. Without a strategy, it’s hard to know if your savings will last. Add in rising healthcare costs and growing life expectancies, and no wonder people are panicked. But we’re here to help you face it head-on.

Income Planning Is Your Retirement Lifeline

The first step in calming the chaos? Build a solid income plan. That means listing all your potential sources of income Social Security, pensions, 401(k)s, 403(b)s, annuities, real estate cash flow, bond ladders you name it. Then, take inventory of your assets and figure out what kind of income they can realistically generate.

Let’s say you have a $100,000 portfolio. Using a conservative 4% withdrawal rate, that’s $4,000 a year. Combine that with Social Security and other income streams, and you’ve got a clearer picture of your financial foundation.

The goal is to create a formalized plan not just wing it. That way, you know what’s coming in, what’s going out, and how long your money will last.

Are You Afraid of Outliving Your Savings?

This is one of the most common fears, and it makes sense. We’re living longer, and that’s putting more pressure on retirement portfolios. We recommend doing a “retirement stress test.” Simulate your income and expenses over time and see if you’ve got enough cushion. Tools like our financial blueprint can help you run the numbers.

But also look at your debt.

Don’t Carry Debt Into Retirement

You may be surprised to learn that 71% of retirees carry non-mortgage debt, averaging about $20,000. That includes credit cards and even student loans. We always say: retire debt-light, if not debt-free. Create a plan to tackle high-interest debt or small balances first and reduce that financial stress before you stop working.

The Retirement Savings Gap Is Real

Let’s talk about savings. Most people aren’t where they think they need to be:

• 30s: Think they need $1.77M, have $60K
• 40s: Need $1.3M, have $92K
• 50s: Need $1.7M, have $116K

If you’re behind, catch-up contributions are your friend. If you’re 50 or older, you can put in an extra $7,500 to retirement accounts. And if you’re between 60 and 63, you may qualify for a “super catch-up.” Small steps now can mean big gains later.

Optimize Your Social Security Strategy

Should you claim Social Security at 62, 67, or 70? The answer isn’t one-size-fits-all. Claiming early can reduce benefits by 30%, while waiting until 70 could increase them by 80%. That’s a huge swing. We recommend looking at your life expectancy, spousal benefits, and how Social Security fits into your overall retirement strategy.

Don’t Let Healthcare Costs Drain Your Savings

Healthcare is another big fear, and for good reason. Medicare kicks in at 65, but it doesn’t cover everything. That’s why we talk about Medigap policies, long-term care insurance, and funding Health Savings Accounts (HSAs) in advance. Planning for healthcare now can help you avoid big financial hits down the road.

Withdraw With a Strategy Or Risk Running Out

Nearly half of retirees take money from their accounts with no withdrawal plan. That’s risky. Every retirement account is taxed differently. Roth IRAs are tax-free, 401(k)s are taxed as income, and brokerage accounts are subject to capital gains. By diversifying your withdrawal strategy, you can manage your tax bracket and stretch your savings.

Plan for Market Drops Before They Happen

Sequence of returns risk is a fancy way of saying that a bad year in the market early in retirement can hurt you big time. We recommend setting aside 2–5 years of “safe money” in savings accounts, CDs, or short-term bonds. That way, you’re not forced to sell investments at a loss when the market dips.

Retirement Isn’t Just Financial, It’s Personal

We’re big believers in phased retirement easing into the next phase of life. About 33% of employers allow reduced hours before full retirement. It’s a great way to transition without a cliff dive. Think about what you want retirement to look like. Is it travel? Volunteering? More time with grandkids?

Whatever it is, plan for it just like you would your finances. Organize your support system. Define your new purpose. Your money and your joy should go hand-in-hand.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.