Most Americans surveyed cut or stopped retirement savings due to the current economy

Recent data from Allianz Life’s Q4 2025 Quarterly Market Perception study found that more than half of Americans (51%) have either stopped or reduced their retirement savings in the past six months due to the current economic environment. 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.

Concerns about the cost of health care is a contributing factor, according to the study. The majority of Americans (59%) say they are prioritizing saving for health-related expenses over other financial goals due to anticipated premium hikes.

Kelly LaVigne, vice president of consumer insights, Allianz Life. notes that stopping or reducing retirement savings will have both short- and long-term implications.

Employer match may also be lost

“In the short-term, people who stop or reduce their retirement savings may be losing the employer match, which will be hard to get back,” he says. He adds that people need to make sure they don’t cut retirement funding too much and risk not having enough money to fund the retirement they want. “With compound interest, it takes more money to save at the end of your work life than it does in the beginning. It’s not about timing the market; it’s about time in the market.”

Younger generations are more likely than older generations to have cut back on their retirement savings. The study found that 62% of Gen Z and millennials are more likely to say they have stopped or reduced retirement savings as opposed to Gen X (46%) or baby boomers (36%). 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.

Americans worry about market downturn, job losses

Consumers are also not feeling the impact of stock market gains. Despite the stock market reaching record highs in 2025, 68% said their personal financial situation does not reflect this economic prosperity. In addition, 56% say they expect a market correction in 2026.

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. Outlook on a market correction in the coming year varies by generation. Sixty percent of baby boomers anticipate a market correction in the 2026 when compared with Gen Xers (54%), millennials (57%) or Gen Z (50%).

“It’s interesting, but not surprising, that even though the stock market is doing better, people don’t feel it. Most people don’t have all their money in the stock market. They feel the pinch when they go to the grocery store, get gas or pay for utilities. Stock market gains don’t put food on the table,” LaVigne says.

Going into the new year, fewer Americans say they are optimistic about their financial situation improving. When asked if they think the economy will improve in 2026, only 45% said it would. This is the lowest outlook in the last six years Allianz has conducted this survey. It was 59% in 2024, 47% in 2023, 48% in 2022, 54% in 2021, and 66% in 2020.

More than four in 10 consumers (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.

LaVigne notes that if people are worried about the market going down, they need to protect the money they have now. He recommends people talk with a financial professional about ways they can protect their assets. “Financial professionals can help their clients find investments with protections. Make a plan to make sure you don’t fall behind and have to work longer to make up for a retirement shortfall.”

Methodology: The Q4 2025 Quarterly Market Perceptions Study is from the Allianz Center for the Future of Retirement, part of Allianz Life Insurance Company of North America (Allianz Life). The online survey was conducted in November 2025 with a nationally representative sample of 1,005 respondents aged 18+ in the contiguous U.S.

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