The middle class's worst retirement fear

• A new Transamerica report highlighted the middle class's concerns about retirement.
• It said that 39% of respondents were concerned Social Security benefits would be reduced or depleted.

As a retirement tsunami looms in the US, life after work is top of mind for many. And some Americans worry they'll survive longer than Social Security.

On Wednesday, the Transamerica Center for Retirement Studies released its 2024 retirement outlook for the middle class. It delved into the financial concerns and retirement preparations for those with annual household incomes of $50,000 to $199,999 using a sample of just over 10,000 people — about 5,000 of which fit into the middle-class definition.

As it turns out, those middle-class workers have their own worries about retirement. Their greatest fear across the board: Outliving their savings and investments.

Among those with household incomes of $50,000 to $99,000, and those with incomes of $100,000 to $199,000, 40% of both groups said that sticking around longer than their nest eggs was one of their greatest fears in retirement.

That comes as middle-class Americans expect to live until age 90 on median, over a decade more than the US's current life expectancy of 77.5. For Americans age 65 — which is roughly the average retirement age — life expectancy is 18.4 more years, meaning they'll have a good amount of years to live on savings or Social Security.

It might make sense, then, that middle-class Americans are worried about the future of Social Security, which often fills in the cracks between retirees' savings and financial needs. Broadly, 39% of those in the middle-class cohort said that one of their greatest fears in retirement was that Social Security would be reduced — or simply cease to exist — in the future.

The uncertain future of Social Security has long had older generations concerned. According to the latest Social Security and Medicare Board of Trustees report, the program will only be able to pay out full benefits for the next 11 years — meaning that after that point, benefits will dwindle if Congress does not step in.

That's particularly troubling for Americans who have relied primarily on Social Security benefits to stay afloat financially in retirement. A recent NerdWallet study of 2,100 adults found 30% of respondents said they believe Social Security alone will allow them to live comfortably in retirement.

One 63-year-old previously told Business Insider that she is "incredibly scared" Social Security won't be enough to cover her expenses: "I think I'll probably need to work until I die because there's no money."

Additionally, per the report, Social Security concerns are a primary reason some middle-class people plan to work while in retirement. Of the 52% who plan to work after they retire, 55% plan to do so because of the extra income, while 33% are concerned Social Security benefits will be lower than expected.

With the presidential election quickly approaching, the fate of Social Security and Medicare is a hot-button issue for candidates Vice President Kamala Harris and former President Donald Trump. While Trump has vowed to protect benefits for older Americans, Democrats have accused the GOP of threats to cut the benefits and raise the retirement age — and it'll likely be a growing issue as November gets closer.

Are you worried about outliving your retirement savings? Contact these reporters at jkaplan@businessinsider.com and asheffey@businessinsider.com.