MINNEAPOLIS--(BUSINESS WIRE)--Americans are more optimistic about the economy than they have been in years even as the effects of inflation linger, according to the 2024 Q4 Quarterly Market Perceptions Study* from Allianz Life Insurance Company of North America (Allianz Life).
The majority of Americans (59%) think the economy will improve in 2025. This is higher than it has been since 2020. Even more (67%) say they think their financial situation will improve in 2025 – more than any year since 2020.
About one in three (35%) Americans says it is a good time to invest in the market right now, up from 29% last quarter. Gen Z (45%) and millennials (39%) are more optimistic about the market than Gen X (30%) and boomers (29%).
“It’s encouraging that Americans are optimistic about the economy,” says Kelly LaVigne, VP of consumer insights, Allianz Life. “It’s important to use this optimistic time to build a strong financial strategy for the long term. A comprehensive plan can help clients navigate future headwinds while working toward achieving financial goals.”
At the same time, 67% say they worry that the upcoming changes in government will cause more market volatility. Gen Zers (75%) are more likely to have this worry than millennials (67%), Gen Xers (62%) or boomers (67%).
Effects of ongoing inflation linger
While Americans are hopeful about the economy, the rising cost of living continues to affect many people’s finances. The good news is that Americans are also more optimistic about inflation. Fewer Americans expect inflation to get worse in the next year. Just 60% of Americans say they expect inflation to get worse over the next 12 months, the lowest to report this since the question was first asked in Q3 2021. Many (43%) say they feel good about the direction inflation is heading.
At the same time, Americans have experienced financial setbacks because of the increased cost of living. The majority of Americans say they have either stopped or reduced retirement savings (51%), taken on more debt (50%), and haven’t been able to contribute to their savings as much due to ongoing inflation (68%). Gen Xers (81%), in particular, worry that the rising cost of living will affect their retirement plans.
Many are seeking professional guidance to address inflation in their financial strategy. Three in four (76%) say they would stop using their current advisor if they didn’t help effectively manage ongoing inflation concerns.
*Allianz Life conducted an online survey, the 2024 Q4 Quarterly Market Perceptions Study in November 2024 with a nationally representative sample of 1,004 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, 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 2023, Allianz Life provided additional value to its policyholders via distributions of more than $13.73 billion. Allianz Life is a leading provider of fixed index annuities, registered index-linked annuities, and fixed index universal life insurance. Additionally, Allianz Investment Management LLC (AllianzIM), a registered investment advisor 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 approximately 157,000 employees in more than 70 countries. Allianz Life is a proud sponsor of Allianz Field® in St. Paul, Minnesota, home of Major League Soccer’s Minnesota United.
