A growing number of Americans are losing confidence in their ability to reach long-term financial goals, according to new data from Allianz Life.
The survey, released in 2025, reveals a sharp drop in optimism. Only 70% of respondents now feel confident about funding the lifestyle they desire—down from 83% in January 2020. Experts point to a range of global and domestic challenges over the past five years, including the pandemic, conflicts in Ukraine and the Middle East, inflation, and economic instability, as major factors eroding financial confidence.
Despite the decline in optimism, a vast majority—96%—say they understand what it takes to regain control: setting clear financial goals and mapping out a long-term plan. However, less than half have actually created such a strategy.
“People often lack financial confidence because they don’t have a plan,” said Kelly LaVigne, Vice President of Consumer Insights at Allianz Life. “Having a written strategy is essential, especially when preparing for retirement. It’s difficult to feel secure about your future without knowing the steps it takes to get there.”
The study also highlights a retirement savings gap, with more than half of respondents saying they’re behind on building their nest egg. Millennials are trailing even further behind compared to older generations.
When asked about their biggest concerns, 62% worry that another major crisis could derail their retirement plans. Health issues (37%) and the risk of a recession (35%) also rank high among the fears.
While economic downturns and global events may be beyond personal control, LaVigne emphasizes that proactive planning can reduce uncertainty. “You can’t prevent every risk, but you can create a financial strategy that prepares you for them. Working with a trusted financial advisor and relying on institutions that take a long-term view will strengthen your foundation.”
The message is clear: while uncertainty remains, the path to financial confidence lies in planning, preparation, and professional guidance.
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News Source: InvestmentNews.com
