MINNEAPOLIS–(BUSINESS WIRE)–More Americans say that they are too nervous to invest right now and are worried about their retirement savings more than they have in the last six years as extreme market volatility ripples through the economy, according to the 2025 Q2 Quarterly Market Perceptions Study* from Allianz Life Insurance Company of North America (Allianz Life).

Nearly half (48%) of all Americans say they are too nervous to invest right now. This is up from 41% in Q1 and higher than any other time since Allianz first asked this question in 2019.

At the same time, market volatility is also leading to increased worry about long-term financial security for goals like retirement. Similarly, 47% say volatility in the market is making them nervous about their nest egg. This concern is one of the highest recorded since Allianz first asked this question in 2019, matching the level in 2023 following a period of rapid inflation.

Nearly three in four (73%) are concerned that continued market volatility could negatively impact their long-term financial plan. With that, 72% worry that they might not be able to afford the lifestyle they want in retirement if this market volatility continues or gets worse.

“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,” says Kelly LaVigne, VP of consumer insights, Allianz Life. “For people who are still many years away from retirement, staying the course is the best option. But recent market volatility highlights the need to incorporate risk management into a retirement strategy since it could result in depleting assets faster than anticipated through a negative sequence of returns.”

Much of the current market volatility stems from ongoing uncertainty around tariffs. The majority of Americans (77%) worry that new tariffs will increase their cost of living.

Increasing worry about a recession

The majority of Americans (63%) worry that a major recession is right around the corner, up from 53% last quarter and the highest since 2023. Gen Zers are most worried about a recession (67%), compared to millennials (63%), Gen Xers (64%), and boomers (61%).

More Americans (45%) are concerned that they will be laid off because of an economic downturn than they were in Q1 (40%). Gen Zers are the most worried with 64% saying they are concerned about a layoff this year, compared to 45% of millennials and 41% of Gen Xers.

Many are making changes to their portfolios and turning to financial professionals for help. More than half (55%) say they have made changes to their investments to make them less risky or more conservative because of recent market volatility, up from 49% in Q1. Two in three (66%) Americans who have a financial professional say they have recently or plan to reach out to their advisor because of concerns about recent market conditions. This is up from 59% last quarter.

“Current market volatility has underscored the need to address this risk within a retirement strategy,” LaVigne says. “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. This uncertainty also underscores why it is so important to work with strong and stable financial institutions that take a long-term view and will be here for you in the future.”

*Allianz Life conducted an online survey, the 2025 Q2 Quarterly Market Perceptions Study in May 2025 with a nationally representative sample of 1,003 Respondents age 18+.

Allianz Life Insurance Company of North America does not provide financial planning services.

About Allianz Life Insurance Company of North America

Allianz Life Insurance Company of North America (Allianz Life), one of the Ethisphere World’s Most Ethical Companies®, has been trusted since 1896 to help millions of Americans prepare for financial uncertainties and retirement with a variety of innovative risk management solutions. In 2024, Allianz Life provided additional value to its policyholders via distributions of more than $18.6 billion. Allianz Life is a leading provider of fixed index annuities, registered index-linked annuities, and indexed universal life insurance. Additionally, Allianz Investment Management LLC (AllianzIM), a registered investment adviser and wholly owned subsidiary of Allianz Life, offers a suite of exchange-traded funds (ETFs). Allianz Life and AllianzIM are part of Allianz SE, a global leader in the financial services industry with more than 157,000 employees in nearly 70 countries. Allianz Life is a proud sponsor of Allianz Field® in St. Paul, Minnesota, home of Major League Soccer’s Minnesota United.