December 18, 2024 Newswires

More Americans Plan to Focus on Finances in 2025, Allianz Life Study Finds

Business Wire

Allianz Life New Year’s Resolutions Study finds 35% anticipate their finances will improve in the coming year

KEY FINDINGS:

41% say they are more stressed about their finances than last year
38% say financial stability is their top focus area in 2025
35% say they think their overall financial situation will be better next year

MINNEAPOLIS--(BUSINESS WIRE)--
More Americans intend to focus on financial stability in the coming year than they have in the last decade, according to the 2025 New Year’s Resolutions Study* from Allianz Life Insurance Company of North America (Allianz Life).

Financial stability was ranked as the No. 1 focus area in the next year by 38% of Americans in the annual study. This is up from 33% last year and higher than any other year since 2015 when Allianz Life first started tracking. Millennials, in particular, want to focus on their finances with 44% ranking financial stability as their top priority in 2025. In comparison, 37% of Gen Xers and 33% of boomers said the same.

Health and wellness was the most common priority with 45% of Americans ranking it as their top focus for the coming year.

“With the rising cost of living, Americans are prioritizing financial stability as part of their New Year’s resolutions in 2025 to achieve greater security in the coming year,” says Kelly LaVigne, VP of consumer insights, Allianz Life. “The new year is an ideal time for Americans to examine the status of their finances, write down their goals, and create a financial plan for the year ahead.”

About one in four (24%) say building up an emergency fund is the top way they could improve their finances in the next year. This is up from 17% in 2023. Many also say they could improve their finances by paying down credit cards (15%) and increasing retirement savings (15%).

Cost of day-to-day expenses causing stress

Financial stress levels are similar to last year for Americans with 44% saying their stress about finances is about the same as it was the prior year. Another 41% say they are more stressed. Just 16% say they are less stressed. More than half of millennials (52%) say they are more stressed, compared to 37% of Gen Xers and 23% of boomers.

What’s causing this financial stress? Americans say cost of day-to-day expenses (54%), their income or retirement income being too low (49%), not saving enough for an emergency fund (35%) and too much debt (35%) is contributing to their financial stress.

The majority of Americans say they have bad financial habits. Most of those habits include excessive spending and lack of savings.

30% spend too much money on things they don’t need
28% don’t save any money
27% save some money but not as much as they could
23% aren’t paying down debt fast enough
21% say they spend more than they make

Looking ahead to 2025, many Americans anticipate their finances will improve in the coming year. More than one in three (35%) say they think their overall financial situation will be better in 2025. At the same time, 25% say their overall financial situation improved in 2024.

“Americans who are looking to improve their financial health in 2025 can work with a financial professional who can help them create a strong financial strategy for their future,” says LaVigne. “That strategy can help decrease stress by providing a guide for how to curb excessive spending and prioritizing saving.”

*Allianz Life conducted an online survey, the 2025 New Year’s Resolutions Study in November 2024 with a nationally representative sample of 1,105 Respondents age 18+.

About Allianz Life Insurance Company of North America

Allianz Life Insurance Company of North America, one of the Ethisphere World’s Most Ethical Companies®, has been trusted since 1896 to help millions of Americans prepare for financial uncertainties and retirement with a variety of innovative risk management solutions. In 2023, Allianz Life provided additional value to its policyholders via distributions of more than $13.73 billion. Allianz Life is a leading provider of fixed index annuities, registered index-linked annuities, and fixed index universal life insurance. Additionally, Allianz Investment Management LLC (AllianzIM), a registered investment advisor and wholly owned subsidiary of Allianz Life, offers a suite of exchange-traded funds (ETFs). Allianz Life and AllianzIM are part of Allianz SE, a global leader in the financial services industry with approximately 157,000 employees in more than 70 countries. Allianz Life is a proud sponsor of Allianz Field® in St. Paul, Minnesota, home of Major League Soccer’s Minnesota United.