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

MINNEAPOLIS--(BUSINESS WIRE)--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 Allianz Center for the Future of Retirement, part of Allianz Life Insurance Company of North America (Allianz Life).

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 Kelly LaVigne, VP of consumer insights, Allianz Life. “Achieving your dream retirement generally takes continual incremental progress over your working years. A financial professional can help you create a financial strategy to help balance current demands with long-term goals.”

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.”

* Allianz Center for the Future of Retirement conducted an online survey, the Q4 2025 Quarterly Market Perceptions Study in November 2025 with a nationally representative sample of 1,005 respondents age 18+ in the contiguous U.S.

The Allianz Center for the Future of Retirement produces insights and research as a part of Allianz Life Insurance Company of North America.

Products are issued by Allianz Life Insurance Company of North America (Allianz). Registered index-linked annuities are distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. 800.542.5427 www.allianzlife.com

This content does not apply in the state of New York.

About Allianz Life Insurance Company of North America

Allianz Life Insurance Company of North America (Allianz Life), 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 2024, Allianz Life provided additional value to its policyholders via distributions of more than $18.6 billion. Allianz Life is a leading provider of fixed index annuities, registered index-linked annuities, and indexed universal life insurance. Additionally, Allianz Investment Management LLC (AllianzIM), a registered investment adviser 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 more than 157,000 employees in nearly 70 countries. Allianz Life is a proud sponsor of Allianz Field® in St. Paul, Minnesota, home of Major League Soccer’s Minnesota United.