Allianz Life Survey Reveals Financial Stress but Optimism for 2025 Among Americans

A New Year’s Resolution Survey by Allianz Life reveals the nuances of the financial wellbeing picture of Americans in 2024. While the share of individuals reporting being more financially stressed increased compared to 2023, Allianz also found subtle improvements in financial situations overall, as well as optimism for 2025.

The top driver of financial stress was the cost of day-to-day expenses, cited by 54% of respondents in 2024, a decline from 61% in 2023. Meanwhile, current income and retirement income being too low rose as the second-biggest concern, reported by 49% in 2024 compared to 44% the previous year.

However, while low current and retirement income were reported as significant stressors, only 17% of respondents cited not saving enough for retirement as a major source of anxiety in 2024, a decrease from 21% in 2023.

Furthermore, despite increased financial stress—41% in 2024, up from 39% in 2023 —25% of respondents reported their overall financial situation had improved in 2024, up from 22% in 2023. At the same time, those saying their situation worsened dipped slightly, from 26% in 2023 to 25% in 2024.

Additionally, people are cautiously optimistic about 2025. Looking ahead, 35% believe their financial situation will improve compared to last year, while 51% expect it to stay about the same, and 13% anticipate it will worsen. This marks a slight increase in optimism from 2023, when 33% expected improvement in 2024, 49% predicted stability and 17% foresaw a decline.

Paradoxical Results

Kelly LaVigne, vice president of consumer insights at Allianz, attributes these contradictory results to a mix of persistent economic challenges and external factors such as election-related uncertainty.

“We’ re concentrating on all the bad things—expenses, debt, and uncertainty—without recognizing the positive gains we’ve made, like how well the market performed or improvements in our 401(k)s,” says LaVigne.

He says now that the election noise is settling, people are realizing they’re in better shape than they thought. “That’s what gives you that kind of contradictory response where people are thinking ‘I’m not as anxious about it, but I still think things are bad,’” LaVigne explains. 

When it comes to financial habits, 10% of respondents cited not seeking professional financial advice as one of their worst habits, which ranked in a tie for eighth, with paying bills late, among 10 survey options.

“It really is difficult for someone who’s just pumping money away into their retirement account to recognize the value that an adviser brings,” says LaVigne. “Financial professionals need to make people more aware that they don’t just sell stuff.”

He says advisers need to highlight their value proposition when it comes to providing advice on debt management, spending control and retirement planning.

Allianz’ findings are based on a 10-minute online survey conducted in November 2024 among a nationally representative sample of 1,105 Americans ages 18 and older.