Americans are losing hope of reaching their financial goals

What’s gone wrong in the last five years that has damaged the financial confidence of so many Americans?

With the list of challenges including the pandemic, wars in Ukraine and the Middle East, inflation, tariffs, and so on, it would be surprising if sentiment hadn’t reflected these significant dents in personal finances.

A new survey from Allianz Life shows how 70% of respondents in 2025 say they are confident in being able to financially support all the things they want to do in life, down from 83% in January 2020.

The good news is that an overwhelming 96% of respondents say they know what is needed to boost their confidence and ensure they can fund their dreams – setting financial goals and develop plans to achieve them. This includes having a long term plan that sets out what money will be required and when.

The bad news is that less than half of respondents have such a plan.

“Lack of financial confidence often is because of a lack of planning,” says Kelly LaVigne, VP of consumer insights, Allianz Life. “To be able to feel confident about your ability to achieve long-term financial goals like retirement, you need to have a written strategy. It’s hard work to figure out the steps it will take to secure your retirement, but that’s where the guidance of a financial professional can help. Without a plan, you will never know if you are on track toward your dream retirement or if you will be able to ensure financial security throughout your retirement.”

Among the notable ways that respondents are not on target with financial plans is retirement savings. More than half say they don’t have enough saved in a retirement account and millennials are way behind older cohorts in this regard.

Among the top reasons why respondents fear running out of money are potential health issues (37%) and recession (35%), although another national or global crisis derailing their retirement saving plans is cited by 62% as a concern.

“While risks to your retirement like a recession are out of your control, you can create a financial strategy that helps address how you will mitigate the risk in the future,” LaVigne says. “As you create that strategy, it’s critical to work with strong and stable financial institutions that take a long-term view and will be here for you in the years to come. This will only help to bolster your confidence that you have a strategy in place no matter what comes your way.”