Americans Cutting Back on Retirement Savings, Allianz Life Study Finds
Fewer say they are optimistic about their financial situation improving in 2026 than last year.
KEY FINDINGS:
- 51% have either stopped or reduced their retirement savings in the past six months due to the current economic environment
- 59% are prioritizing saving for healthcare expenses over other financial goals due to anticipated premium hikes
- 68% say that despite the stock market reaching record highs in 2025, their personal financial situation does not reflect this economic prosperity
Americans are cutting back on retirement savings in the current economic environment and fewer are optimistic about their financial future improving than last year, according to the Q4 2025 Quarterly Market Perceptions Study* from the
Two in three (66%) say they have not been able to contribute to their savings as much in the past six months due to the current economic environment. More than half (51%) say they have either stopped or reduced their retirement savings in the past six months due to the current economic environment. Gen Z (62%) and millennials (62%) are more likely than Gen X (46%) or boomers (36%) to say they have stopped or reduced retirement savings. What’s more, 47% say they have had to dip into their retirement savings in the past six months due to the current economic environment.
“While it may seem to hurt less in the short-term, cutting back on retirement savings now may hold back your ability to achieve your retirement goals in the long run,” says
Concerns about the cost of health care is a contributing factor. The majority of Americans (59%) say they are prioritizing saving for healthcare expenses over other financial goals due to anticipated premium hikes.
Americans expect a market downturn
Fewer Americans think the economy will improve in 2026 (45%) than they did at the start of 2025 (59%). This is lower level of optimism than in the last five years. At the same time, fewer Americans think their own financial situation will improve in 2026, down to 59% from 67% last year. More than two in three (68%) say that despite the stock market reaching record highs in 2025, their personal financial situation does not reflect this economic prosperity.
Worries about the stock market and job security are part of the concerns about the economy. More than half (56%) say they expect a market correction in 2026. Boomers (60%) are more likely than Gen Xers (54%), millennials (57%) or Gen Z (50%) to expect a market correction in the coming year. Two in five (44%) are concerned they will be laid off because of an economic downturn in 2026. The majority of Americans (57%) worry that a major recession is right around the corner.
“One key element for any long-term financial strategy is to be prepared for the risk of a market downturn,” LaVigne says. “You can’t avoid swings in the market, but you can incorporate risk management strategies, such as annuities, to help reduce your exposure to the risk.”
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sarah.hauer@allianzlife.com
@AllianzLife
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