Investor anxiety hits six-year high amid market turmoil, Allianz finds

Investor anxiety hits six-year high amid market turmoil, Allianz finds
New survey reveals heightened investor concern over market volatility, retirement readiness, and the impact of tariffs on living costs.
JUL 11, 2025

A growing number of Americans say they’re too nervous to invest, with more than half adjusting their portfolios and many questioning the long-term sustainability of their retirement plans, according to new data from Allianz Life.

Drawing from an online poll it performed in May, the insurer’s Q2 2025 Market Perceptions Study found that 48% of respondents are currently too anxious to invest – the highest percentage recorded since the survey began in 2019. That figure is up from 41% in the first quarter of this year.

Market instability is also fueling concerns about long-term financial security. Seventy-three percent of respondents said they worry that ongoing volatility could derail their financial plans for retirement, while 72% expressed concern about affording their desired lifestyle if conditions worsen.

“It can be hard to watch values in accounts that are invested for long-term goals like retirement fluctuate wildly during times of market volatility,” Kelly LaVigne, vice president of consumer insights at Allianz Life, said in a statement unveiling the results. “But recent market volatility highlights the need to incorporate risk management into a retirement strategy.”

In addition to the financial market swings, the study found 77% of Americans believe new tariffs will further drive up their cost of living – an anxiety that may be contributing to broader economic unease.

Concerns about a potential recession are also intensifying. Sixty-three percent of respondents said they believe a major recession is looming, up from 53% last quarter. Younger Americans were more likely to feel unnerved, with 67% of Gen Z respondents indicating fears of a recession, compared with 63% of millennials and 61% of boomers.

Layoff fears are growing too, particularly among younger workers. Forty-five percent of Americans said they’re worried about job security due to an economic downturn, rising from 40% in Q1. Among Gen Z, nearly two-thirds (64%) said they fear losing their job this year.

In response, more than half of investors have taken steps to dial down their exposure to risk. Fifty-five percent said they’ve made their portfolios more conservative, up from 49% last quarter. Two-thirds of respondents who work with a financial professional also said they’ve either reached out or plan to do so to address market concerns.

“This is particularly important during the fragile decade – the years right before and immediately after retiring – when market volatility can have the greatest effect on a retirement strategy,” LaVigne said.

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