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US financial confidence drops 13 points by 2025 amid inflation and Social Security worries

Market News
13 May 2026
24/7 Wall Street
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Bearish
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The Allianz 2025 Annual Retirement Study reveals a 13-point decline in American financial confidence from 83% in 2020 to 70% in 2025, driven largely by inflation, rising living costs, and concerns over Social Security's future. Millennials show the lowest confidence at 61%, reflecting their unique economic challenges including the 2008 crisis and recent housing market pressures. Despite rising wages and steady employment, savings rates have fallen, highlighting a squeeze on household budgets. The study also notes a significant trust gap in Social Security's longevity and a widespread lack of retirement planning knowledge, raising questions about future financial security and spending behavior.

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