Americans are cutting back on retirement savings, and fewer than last year are optimistic that their financial future will improve, according to a new market perceptions study from the Allianz Center for the Future of Retirement (part of Allianz Life Insurance Company of North America).
The Q4 2025 Quarterly Market Perceptions Study was conducted in November with a nationally representative sample of more than 1,000 respondents aged 18 and older.
Two in three survey respondents said they have not been able to contribute to their savings as much in the past six months due to the current economic environment, and concern about the cost of healthcare 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.
See also: How four generations of workers are faring in retirement savings
More than half (51%) said 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.
“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, vice president of consumer insights for Allianz Life. “Achieving your dream retirement generally takes continual incremental progress over your working years.”
A bleak outlook for retirement
Fewer Americans think the economy will improve in 2026 (45%) than they did at the start of 2025 (59%). That’s the lowest level of optimism in five years. Similarly, fewer Americans also 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.
“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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