I’m opening a file that gets heavier every time a Rhode Islander walks through my door — not a claim, not a bill, but a creeping fear that their money won’t last as long as they do.
The Fear That Overtook Death
For generations, the ultimate financial fear was leaving your family too soon without enough life insurance. Today, that dread has been eclipsed. Nearly two in three Americans now say they worry more about running out of money in retirement than about death itself (Allianz Life 2025). The shift is profound, and it hits hard in New England, where the cost of a long, comfortable retirement can outstrip even the best intentions.
Here in Rhode Island, the equation feels more urgent. Heating a home through a coastal winter, covering property taxes in South County, or paying for home care in Providence — these aren't hypotheticals. When a 65-year-old couple can reasonably expect at least one spouse to live past 90, that's 25 years of income that must come from somewhere. The fear isn't irrational. It's a late-night conversation happening in too many Ocean State kitchens.
For many Rhode Islanders, outliving savings means choosing between heating their home and refilling prescriptions. It’s not a far-off risk — it’s a monthly calculation.
The Retirement Savings Gap in Rhode Island
The national numbers are stark. People say they need a median of about $875,000 to retire comfortably (Bankrate 2025 Retirement Savings Report). Yet the average household nearing retirement has saved far less — often under $200,000. That gap isn't just a national statistic; it's a local reality. Rhode Islanders face higher-than-average living costs, especially in housing and energy, which means the target number may actually be higher here.
What throws most people off is not poor discipline but misjudged longevity and inflation. A couple retiring today might plan for 20 years, but they could easily live 30. That extra decade at the end is where the money runs dry — when you may need costly care and have fewer options to earn new income. It's a slow-motion crisis that we can see coming if we're willing to look.
Not every solution fits every household. Insurance-based income strategies come with costs and fine print. But ignoring the risk won’t make it disappear. The key is to start reviewing your numbers now, with someone who can walk you through what’s actually in your control.
What Outliving Your Money Costs You
The real-world fallout isn't just about a lower balance. It's the phone call to your adult child asking for help with the electric bill. It's selling the family home not because you want to downsize, but because you have to. It's choosing between a new prescription copay and a tank of heating oil. These are the daily math problems that no one expects when they first dream of retirement.
The anxiety spills into health. When you're constantly recalculating whether you can afford to live another year, you aren't enjoying the years you have. I've seen it drain the color out of people — until we sit down and build a simple, understandable plan that replaces fear with a predictable number on the page.
Last month I sat with a couple in Warwick who had done everything right — except they never translated their 401(k) balance into a monthly income plan. They were terrified of a market downturn right before retirement. We used a fixed indexed annuity with a guaranteed income rider to create a paycheck they can’t outlive. That conversation changed their sleep quality overnight. This is the work I love doing.
Questions people ask
How much do I really need to retire in Rhode Island?
National surveys say the median desired is $875,000, but your personal number depends on your expenses, longevity, and planned lifestyle. I help clients run real numbers based on New England costs.
What if I'm already behind on savings?
You're not alone. Most people are behind. The goal isn't to hit some magic number — it's to maximize what you have through guaranteed income, cost-cutting, and smart drawdown strategies.
Is an annuity the only way to guarantee income?
Annuities are one tool, but they're not for everyone. Pensions, Social Security optimization, and bond ladders also provide predictable income. I review all your assets together to find the right mix.
Ready to Sleep Better About Retirement?
Let’s sit down and review your income plan — no pressure, no cost, just a clear look at where you stand. Call me at my Warwick office or book a time online.
Call Omar: 401-287-2737 →Life Catlin Insurance is an independent brokerage. This is general education, not a guarantee of coverage or price; rates depend on age, health, and product. Omar Catlin, Licensed Insurance Broker, North Providence, RI.