Americans Plan to Focus on Financial Stability in 2025

/contrib/content/uploads/sites/415/2023/02/09_People_Coin_Stack_Retirement_Adobe_640x640.jpg

As Americans look forward to the new year, 38% say that their No. 1 focus will be financial stability, according to Allianz Life’s 2025 New Year’s Resolutions Study.

This is up from 33% a year ago and higher than in any other year since 2015, when the first study rolled out.

Forty-four percent of millennials ranked financial stability as their top priority in 2025, compared with 37% of Gen Xers and 33% of baby boomers who did so.

“With the rising cost of living, Americans are prioritizing financial stability as part of their New Year’s resolutions in 2025 to achieve greater security in the coming year,” Kelly LaVigne, vice president of consumer insights at Allianz Life, said in a statement. “The new year is an ideal time for Americans to examine the status of their finances, write down their goals and create a financial plan for the year ahead.”

The study is based on an online survey conducted in November with a nationally representative sample of 1,105 adults.

For 45% of respondents, health and wellness is the main focus for the coming year. Twenty-four percent said building up an emergency fund is the top way they could improve their finances in the next year, up from 17% in 2023.

Many also said they could improve their finances by paying down credit cards and increasing retirement savings.

Feeling Financial Stress

Forty-four percent of survey respondents reported feeling stress about finances, about the same levels as reported last year. Another 41% said they are more stressed this year, while just 16% said they are less stressed.

Fifty-two percent of millennials reported feeling more stress this year, compared with 37% of Gen Xers and 23% of boomers.

As to what is causing their financial stress, 54% of respondents put it down to the cost of day-to-day expenses, 49% said their income or retirement income is too low, 35% cited too small an emergency fund and 35% said too much debt is contributing to their financial stress.

The survey found that a majority of Americans confess bad financial habits:

30% spend too much on things they do not need
28% do not save any money
27% save some money, but not as much as they could
23% are not paying down debt fast enough
21% spend more that they make

Many Americans surveyed have a brighter outlook for their finances in the new year. Thirty-five percent of respondents expect their financial situation to improve. At the same time, 25% said their overall financial situation improved in 2024.

“Americans who are looking to improve their financial health in 2025 can work with a financial professional who can help them create a strong financial strategy for their future,” LaVigne said. “That strategy can help decrease stress by providing a guide for how to curb excessive spending and prioritizing saving.”