Majority of Americans Have Taken a Financial Hit Due to Rising Interest Rates
Allianz Life study finds more Americans worry that a recession is right around the corner.
Key findings:
- 61% have taken a financial hit due to rising interest rates in the past 12 months
- 38% have benefitted financially from rising interest rates in the past 12 months
- 64% worry that a major recession is right around the corner, up from 57% in Q1 2023 and 62% in Q4 2022
As inflation cools, the majority of Americans say rising interest rates have hurt their finances in the last year. Three in five Americans (61%) say they have taken a financial hit due to rising interest rates in the last 12 months, according to the 2023 Q2 Quarterly Market Perceptions Study from
To be sure, some Americans say rising interest rates helped them. About two in five (38%) say they have benefitted financially from rising interest rates in the past 12 months.
“Rising interest rates can sometimes feel like a double-edged sword,” said
Concerns about a recession increased after months of decline. The majority of Americans (64%) worry that a major recession is right around the corner. This is up from 57% in Q1 2023 and 62% in Q4 2022. Boomers are the most concerned with 67% saying they worry a major recession is right around the corner, compared to 61% of Gen Xers and 63% of millennials.
Still, concerns about the future of federal programs for seniors persist. Overall, 80% of Americans worry about the future of Medicare and
Americans want protection from market loss
Along with recession fears, Americans say they are concerned about market volatility. Two in three Americans (66%) say they are keeping more money than they should out of the market because they are worried about loss.
“Even in this volatile market, it doesn’t make sense to leave too much cash on the sidelines,” said LaVigne. “You want to have an emergency fund but you are likely losing purchasing power by not putting your savings to work for you. For long-term goals like retirement, it is critical to take part in the market to try to alleviate the effects of inflation.”
An increasing number of Americans want financial products that help mitigate market risks. For example, 69% say it is important to have some of their retirement savings in a financial product that protects it from market loss, up from 60% at this time last year. Most Americans (62%) say they would stop using their current financial professional if they didn’t help reduce exposure to market volatility.
*Allianz Life conducted an online survey, the 2023 Q2 Quarterly Market Perceptions Study in
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