Key Takeaways
- Nearly three-quarters of Americans fear that market volatility could negatively impact their long-term financial plans.
- With that, about half of Americans said they are too nervous to invest at all right now, according to a study by Allianz released Tuesday.
- Having risk management built into a retirement strategy is necessary for times like this, experts said.
Americans are plagued with anxiety about their investments, worried that market volatility, inflation and tariffs will hurt their retirement plans.
Nearly three-quarters of Americans fear that market volatility could negatively impact their long-term financial plans. If that persists, 72% worry they won’t be able to afford the retirement lifestyle they planned for, according to a quarterly study released Tuesday by Allianz.
As a result, nearly 50% of Americans are too nervous to invest right now, the highest percentage since Allianz started the survey in 2019.
“It can be hard to watch values in accounts that are invested for long-term goals like retirement fluctuate wildly during times of market volatility,” Kelly LaVigne, vice president of consumer insights at Allianz Life, said in a press release.
LaVigne notes that incorporating risk management into a retirement strategy is critical when the market is unstable. Staying the course and avoiding snap decisions are also essential.
“This is particularly important during the fragile decade—the years right before and immediately after retiring—when market volatility can have the greatest effect on a retirement strategy,” he said.