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Rising Financial Tension Among Americans

A new study by FG Annuities & Life, Inc. highlights a trend of increased risk aversion among American investors, marking a significant shift in financial behavior. As a direct response to ongoing affordability pressures impacting their everyday lives, many Americans are reassessing their financial strategies, particularly in relation to retirement planning. The report reveals that events of the past year, including rising healthcare costs, inflation, and concerns surrounding the impact of artificial intelligence on the job market, have heightened financial anxiety across various demographics.

Key Findings from the FG Survey

The sixth annual Risk Tolerance Tracker survey indicates that over 77% of respondents have become more cautious with their investments, reflecting a 4% increase from the previous year. This indicates a growing sentiment that the economic landscape is shifting in a way that compels individuals to prioritize financial stability over potential growth opportunities. With many grappling with higher living costs and economic uncertainty, individuals are becoming increasingly overwhelmed by the thought of achieving a financially secure retirement.

Chris Blunt, CEO of FG Annuities, stated, “Affordability pressures are no longer a short-term challenge; they can have lasting effects on how Americans prepare for retirement.” This sentiment resonates particularly within households making critical decisions about budgeting and financial planning.

The Age Factor in Financial Anxiety

The survey particularly highlights a concerning trend among Americans in their 40s, where a staggering 81% reported increased risk aversion. This age group often finds itself at a pivotal crossroads, juggling responsibilities related to family, housing, and future retirement savings. In terms of financial security, 66% of all respondents express worries about retirement income due to ongoing economic conditions, with 31% doubting the sustainability of Social Security as they approach retirement.

As revealed in the survey, 40% of Americans in their 40s are apprehensive about Social Security, suggesting that generational differences regarding financial confidence are widening; only 20% of Baby Boomers share this concern.

Shift in Financial Concerns

Looking ahead to the financial challenges of 2026, inflation remains a critical concern, identified by 48% of participants, even as the concern has diminished slightly over the past year. Conversely, healthcare and long-term care costs have surged to second place among worries, soaring by 8% from the previous year to 31% of respondents identifying it as their primary concern.
Other significant issues include rising taxes (25%), energy prices (24%), recession fears (23%), Social Security reliability (22%), and housing costs (21%). This array of financial worries reflects the mounting pressures that influence confidence in financial futures.

New Threats on the Horizon

Emerging concerns also shape the financial outlook of Americans. 56% express worries regarding the adverse impact of artificial intelligence on their financial situations, alongside nearly half (49%) being anxious about job market stability. These aspects represent significant shifts in how emerging technologies and economic factors are not just reshaping markets but also individual investment behaviors.

The Role of Financial Advisory

Despite heightened concerns and financial stress, many Americans are navigating these challenges without professional guidance. Over 54% of respondents do not collaborate with a financial advisor. However, behaviors around investment are changing, with many indicating a willingness to explore new financial products that may offer better security, especially among generations like Gen X, who are exhibiting a stronger interest in guaranteed income products such as annuities.

With nearly half (48%) of consumers reporting an increased likelihood of seeking alternative financial products, it suggests a shift towards a more proactive financial stance. Moreover, 73% of Millennials have made recent changes to enhance their financial resilience, while older generations seem less active in making such adjustments.

Conclusion

The results of this study underscore the importance of having a comprehensive financial plan, particularly in a climate of uncertainty. Ron Barrett, Chief Distribution Officer at FG, advises that working with a trusted financial professional can help investors navigate the complexities of their financial landscapes. With expert guidance, investors can create effective strategies that focus on balancing protection, growth, and reliability for their future.

For more insights and specific survey details, visit fglife.com/research.

Methodology

The survey was conducted by Censuswide, involving 1,601 U.S. respondents aged 30+ who hold at least $10,000 in various financial products and are responsible for household financial decisions. Data collection took place between November 14 and November 26, 2025.