In Allianz Life’s Q4 2025 Quarterly Market Perceptions Study, 51% of respondents said they stopped or reduced retirement savings in the past six months due to economic conditions.
Almost as many (47%) said they withdrew money from retirement accounts during that time.
Payroll Integrations’ 2025 Employee Financial Wellness Report found similar behavior, with 38% of respondents saying they used retirement savings. About one in three plans to do so again within the next year to cover emergency or everyday expenses.
“While it may seem a little detrimental in the short term, cutting back on retirement savings now may hinder your ability to achieve your retirement goals later,” said Kelly LaVigne, Allianz Life’s vice president of consumer insights, in a statement. “Achieving your retirement dream often takes steady progress throughout your working years.”
The findings of the reports were recently summarized by PLANADVISOR.
Generation gap, workers who feel the pressure of the market
Young workers are the most likely to rely on retirement funds for short-term cash.
Allianz found that 62% of Gen Z and millennial respondents have achieved retirement savings, compared to 46% of Gen X and 36% of baby boomers.
Payroll Integrations reported that 46% of Gen Z respondents used some of their retirement savings.
Despite strong markets, many workers say they are not feeling well.
Sixty-eight percent of Allianz respondents said their funds do not reflect market returns, and 59% said health care is their most important savings item.
Payroll Integrations found that 36% of respondents believe they are waiting too long to start saving for retirement, and another 36% cited the rising cost of living as hurting their confidence in retirement. 30 percent pointed to market volatility, and 20 percent said they withdrew or borrowed from retirement plans.
Risk aversion is also rising. F&G’s sixth annual Risk Tolerance Tracker survey showed that 77% of respondents had become more financially cautious in the past year.
Anxiety was “higher” among people in their 40s, with 81% reporting an increased risk.
Worrying about the future
Although most workers are still contributing to retirement plans, gaps remain.
Payroll Integrations found that 87% of respondents contributed to employer-sponsored plans, but 27% of baby boomers did not – three times higher than Gen X and millennial shares.
Concerns about the future of Social Security were high among Gen X, with 46% worried that benefits will not be available in retirement. Only 20% of children who grow up in the fields share that concern.
More than half of F&G respondents said they did not use a financial professional. Ron Barrett, chief executive of F&G, said the guide was important.
“In areas defined by economic uncertainty, the need for a comprehensive plan supported by a financial professional has never been more important,” Barrett said in a statement. “A trusted advisor can guide a sustainable retirement strategy that balances protection, growth and guaranteed income, so investors can move forward with greater confidence.”
