Financial Stress Rises Among Americans, Impacting Retirement Confidence

Nearly half of Americans report increased financial stress as they approach 2026, according to a recent study by the Allianz Center for the Future of Retirement. The proportion of individuals feeling more stressed now compared to the start of the previous year has risen from 43% to 48%. Key contributors to this heightened stress include rising daily expenses, insufficient income, inadequate emergency savings, escalating debt, growing healthcare costs, and concerns over job security, with healthcare costs and job security showing significant increases in concern. Labor market dynamics reflect this financial uncertainty, with 56% of Americans indicating plans to look for new employment opportunities in 2026, up from 47% previously. However, a notable segment (71%) prefer job stability amidst economic instability, a phenomenon often referred to as "job hugging." Financial stress is also impacting retirement planning confidence. Over a quarter of respondents have diminished confidence in reaching retirement goals compared to the prior year, with generational differences evident: 38% of Gen X and 32% of Gen Z report decreased confidence, higher than millennials or boomers. Approximately 21% feel they are further from achieving retirement objectives than a year ago. The study highlights a generational divide in financial discipline, with younger cohorts like Gen Z and millennials more likely to commit to resolutions aimed at better money management and increased savings. Despite efforts, many Americans struggle with financial habits such as unnecessary spending, inadequate savings, and debt management, challenges more pronounced among younger generations. Kelly LaVigne, Vice President of Consumer Insights at Allianz Life, emphasizes the importance of consistent, incremental progress toward retirement planning and recommends the adoption of a documented financial strategy to facilitate goal-oriented savings and financial decision-making. The data derives from an online survey conducted in November 2025, sampling 1,038 adults across the contiguous United States. Allianz Life continues to provide risk management and retirement solutions, including fixed index annuities and indexed universal life insurance, supporting Americans in financial planning amid evolving market conditions.