Concern about an upcoming market crash increased in the first part of 2025.
KEY FINDINGS:
- 71% expect inflation will get worse over the next 12 months
- 75% worry that new tariffs will increase their cost of living expenses
- 51% worry that another big market crash is on the horizon
MINNEAPOLIS–(BUSINESS WIRE)–Americans are increasingly worried about inflation and new tariffs increasing their cost of living, according to the 2025 Q1 Quarterly Market Perceptions Study* from Allianz Life Insurance Company of North America (Allianz Life).
Most Americans are expecting inflation to get worse with 71% saying they expect inflation will get worse over the next 12 months. This is up from 60% at the end of 2024. Three in four (75%) worry that new tariffs will increase their cost of living expenses.
Many worry about how ongoing inflation will affect their financial future – 73% are concerned that the rising cost of living will affect their retirement plans. In the short term, 79% worry about rising inflation continuing to have a negative impact on the purchasing power of their income in the next six months. With that, 67% are concerned that their short-term investments (such as bonds and money market funds) do not have high enough returns to combat ongoing inflation.
“While the pain of inflation is hurting many Americans right now, the effect of inflation on your cost of living just compounds over time,” says Kelly LaVigne, VP of consumer insights, Allianz Life. “That means inflation will continue to erode your purchasing power, unless you have a long-term strategy to address it. When you retire, it is important to plan for inflation so that your standard of living does not decrease as the cost of living increases.”
Fewer Americans comfortable investing in the market
Concern about a market crash has increased in the first part of the year. More than half (51%) worry that another big market crash is on the horizon, up from 46% in Q4 2024. At the same time, fewer Americans feel comfortable with investing in the market. Just 26% say they are comfortable with current market conditions and ready to invest now, down from 31% in Q4 2024.
Worries about the market is leading more Americans to connect with a financial professional with 59% saying they recently have or plan to reach out to their financial professional because of concerns about recent market conditions. This is up from 51% in Q4 2024.
*Allianz Life conducted an online survey, the 2025 Q1 Quarterly Market Perceptions Study in February 2025 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 (Allianz Life), 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 2024, Allianz Life provided additional value to its policyholders via distributions of more than $18.6 billion. Allianz Life is a leading provider of fixed index annuities, registered index-linked annuities, and indexed universal life insurance. Additionally, Allianz Investment Management LLC (AllianzIM), a registered investment adviser 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 more than 157,000 employees in nearly 70 countries. Allianz Life is a proud sponsor of Allianz Field® in St. Paul, Minnesota, home of Major League Soccer’s Minnesota United.
Contacts
Sarah Hauer
(763) 765-7341
[email protected]
@AllianzLife
