Savings Slip: Why Americans Are Pulling Back on Retirement Funds

Economic Uncertainty Takes a Toll

Americans are cutting back on retirement savings due to economic uncertainty. A recent study reveals that two-thirds have reduced their savings over the past six months. More than half have either stopped or reduced contributions to retirement accounts.

Younger Generations Hit Hardest

• Gen Z and millennials are more likely to have stopped saving compared to older generations.
• 47% of people have dipped into retirement savings just to get by.

Healthcare Costs a Major Concern

• Over half of Americans are prioritizing saving for medical expenses over other financial goals.
• Rising healthcare premiums are a key driver of this shift.

Economic Outlook Dims

• Fewer people believe the economy will improve in 2026 compared to last year.
• Only 45% think the economy will get better in 2026, down from 59% at the start of 2025.

Personal Financial Worries Grow

• Only 59% think their financial situation will improve next year, down from 67% last year.
• Despite record-high stock markets in 2025, most people don’t feel financially secure.

Market Downturns and Job Security Fears

• Over half of Americans expect a market correction in 2026.
• Boomers are the most worried, with 60% expecting a downturn.
• 44% are concerned about being laid off due to an economic downturn.

Experts Warn Against Cutting Retirement Savings

• Cutting back now could hurt in the long run.
• Recommendations:
• Work with a financial professional to balance current needs with future goals.
• Use risk management strategies to prepare for market swings.