Financial uncertainty escalates as inflation and market fluctuations continue to weigh on Americans. According to the 2025 Q1 Quarterly Market Perceptions Study from Allianz Life Insurance Company of North America, 71% of Americans expect inflation to worsen over the next 12 months, a significant increase from 60% at the close of 2024. Meanwhile, 75% fear that new tariffs will drive up their cost of living, further intensifying financial pressures.
Additionally, 51% of respondents predicted another major market crash, a jump from 46% in the previous quarter. Only 26% feel comfortable investing in current conditions, down from 31% in Q4 2024.
Americans are increasingly worried about the long-term effects of inflation. Nearly three in four believe rising costs will impact their retirement plans, while 79% fear inflation will continue to weaken their income’s purchasing power in the next six months. Short-term investments are also under pressure, with 67% concerned that returns on bonds and money market funds are too low to offset inflation.
Growing economic uncertainty is prompting more Americans to seek financial advice. 59% have recently consulted or plan to consult a financial professional, up from 51% in the previous quarter.
With rising costs and market uncertainty, Americans are increasingly seeking financial guidance. Strategic planning and diversified investments will be key to navigating these challenges and maintaining financial stability in the year ahead.
For Guadalupe Barriviera