Most people are pessimistic about the economy right now.
The latest Quarterly Market Perceptions Study from Allianz Life Insurance Company of North America (Allianz Life)1 found that less than half (47%) of Americans think the economy will improve in the next year. This was down from 54% in the last quarter of 2021 and 66% at the end of 2020.
What’s taking away the optimism? The vast majority of people in survey said they are worried that current world tensions will cause a recession (79%) and expect volatility to continue in the market this year (81%).
In particular, respondents were worried about how the risks of volatility would affect their retirement savings. Anxiety about the risks of volatility on retirement savings is higher than it has been in a year. 40% of respondents said volatility in the market is making them anxious about their nest egg.
More than four in 10 respondents (43%) said they are too nervous to invest in the market right now. This is the highest level of worry since 2019, and that mindset could lead to risk-averse behaviors that could put clients behind in the end.