📉 How Many People Run Out of Money?

~45% of Americans who retire at 65 are projected to deplete their savings during retirement, even when invested and diversified nasdaq.com+15businessinsider.com+15restonyc.com+15.
60–70% of retirees rely solely on Social Security, which replaces on average just ~40% of pre-retirement income gitnux.org.
25% of retirees—about 1 in 4—have no retirement savings at all, and 15% depend on their children financially listwithclever.com.
~71% of retirees worry about running out of money, and 60% of Americans aged 50+ have less than $100K saved businessinsider.com+7gitnux.org+7zipdo.co+7.

💥 What People Do When They Run Out

Here are real-world financial lifelines retirees turn to:

1. Cutting Costs

They cut discretionary spending — travel, dining out, turn down heat/AC, negotiate bills restonyc.com.

2. Tapping Home Equity

Many take a reverse mortgage, downsize, or rent out parts of their home nasdaq.com+2restonyc.com+2thestreet.com+2.

3. Returning to Work

About 20% of retirees work part/full-time post-retirement zipdo.co+15consumerreports.org+15restonyc.com+15.
Real examples include 80-year-olds working full-time and many over 70 still earning income zipdo.co.

4. Relying on Family and Aid

~15% lean on adult children; others move in with family or seek community charity support restonyc.com+1thestreet.com+1.

5. Government Assistance Programs

Seniors use Medicaid, SNAP, housing subsidies, SSI, etc. .

6. Taking on Debt

Many resort to credit cards, payday loans, even pawn shops. Debt among retirees averages $20K non-mortgage, $10K medical listwithclever.com+1restonyc.com+1.

7. Bankruptcy

About 15% file for bankruptcy to manage unsustainable debt businessinsider.com.

8. Selling Assets

Retirees sell possessions, vehicles, collectibles or even cash in life insurance zipdo.co+10restonyc.com+10restonyc.com+10.

9. Turning to Annuities

Some convert part of their savings into annuities to guarantee income and reduce the risk of outliving their money thestreet.com+5johnstevenson.com+5reddit.com+5.

🔎 Real-Life Illustrations & Data

80-year-old working full-time with $37 in savings, $70K debt — works for income and mental health businessinsider.com.
Nearly half of retirees are on track to deplete assets, especially single women (~55% risk) businessinsider.com+1reddit.com+1.
MarketWatch & Morningstar confirm ~45% run out of money, with Social Security and pensions increasingly fragile .

🧭 Key Takeaways

High risk: 4–5 out of 10 retirees face depletion of savings.
Reactive strategies: They often pivot to cutting costs, work, debt, or home equity.
Annuities and guaranteed income products are being considered more—though uptake remains low restonyc.com.

🎯 What Should Someone Do?

Smart retirees typically use multiple strategies:

Build guaranteed income — Social Security + annuities.
Keep cash flow flexible — part-time work, side gigs.
Control expenses — minimize lifestyle inflation.
Use home equity thoughtfully
Plan ahead — avoid crisis borrowing, preserve dignity.

12 Real-Life Reasons Smart People Use Annuities

These aren’t hypotheticals. These are real-world strategies used by real people to protect their income, their families, and their future. Which one sounds like you?

(Click the arrow to expand)✅ Market Protection & Income Stability

John, 66: Retired in early 2008 with $700K. Market crash wiped out 35%, but $300K in a fixed indexed annuity stayed untouched and paid him $1,500/mo through the crash.

🎯 Moral: The annuity was the only income that didn’t flinch during the crash.

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(Click the arrow to expand)✅ Lifetime Income & Pension Alternatives

Susan, 62: Divorced at 58. Rolled over $150K into a fixed annuity with lifetime income. Started at 65, providing stability + peace of mind.

James, 64: Had no pension. Used $400K to buy a deferred income annuity. At 74, it pays $2,800/mo for life.

Marie, 67: Lost her husband unexpectedly. Her fixed indexed annuity continued $1,200/month for life. No disruption in lifestyle or housing.

🎯 Moral: Annuities provide guaranteed income for life, even after life's curveballs.

Find Out If This Could Be You

(Click the arrow to expand)✅ Conservative Savers & CD Alternatives

Frank, 73: Tired of 1%-2% CDs. Moved $200K into a MYGA at 5%. Now earns $10K/year, no fees, no risk.

Alan, 60: Retired early, needed income from 60–67. Laddered 3 MYGAs to bridge the gap without draining accounts.

🎯 Moral: MYGAs offer conservative savers a better yield and income bridge with zero market risk.

Secure Your Growth

(Click the arrow to expand)✅ Business Sales & Retirement Rollovers

Paul, 59: Sold plumbing business. Used $300K for a SPIA. Got $1,700/month starting immediately.

Elizabeth, 61: Attorney. Deferred taxes with a $100K annuity. Income starts at 68, when she’s in a lower tax bracket.

🎯 Moral: Annuities help business owners and high-income earners convert cash into lifetime income and tax control.

See Your Rollover Options

(Click the arrow to expand)✅ Legacy, Medicaid & RMD Planning

George & Nancy, 70s: Left lifetime income to special needs child with a life annuity + period certain payout.

Carol, 73: Didn’t need RMDs. Used a QLAC to delay until 85 and reduce tax exposure.

Linda, 66: Sold home, moved into a condo. Used $250K from home sale for a 5.25% fixed annuity.

Robert, 78: Needed Medicaid care. Wife moved funds into a compliant annuity to qualify and protect their income.

🎯 Moral: Annuities help preserve assets, simplify legacy planning, and navigate healthcare costs smartly.

Let’s Talk Legacy

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