Long-term retirement accounts are increasingly serving as sources of emergency funds as American workers confront rising costs and persistent financial anxiety, according to multiple recent studies.
Surveys from Allianz Life Insurance, Payroll Integrations and F&G Annuities and Life show Americans cutting back on retirement contributions and tapping savings meant for later life to cover immediate needs, even as financial markets reached record highs in 2025.
In Allianz Life’s Q4 2025 Quarterly Market Perceptions Study, 51% of respondents said they had stopped or reduced retirement savings in the previous six months because of economic conditions.
Nearly as many (47%) said they had withdrawn money from retirement accounts during that period.
Payroll Integrations’ 2025 Employee Financial Wellness Report uncovered similar behavior, with 38% of respondents saying they had tapped retirement savings. About one-third plan to do so again within the next year to cover emergency or everyday expenses.
“While it may seem to hurt less in the short-term, cutting back on retirement savings now may hold back your ability to achieve your retirement goals in the long run,” Kelly LaVigne, Allianz Life’s vice president of consumer insights, said in a statement. “Achieving your dream retirement generally takes continual incremental progress over your working years.”
The findings of the reports were recently summarized by PLANADVISOR.
Generation gap, workers not feeling market momentum
Younger workers were the most likely to rely on retirement funds for short-term cash.
Allianz found that 62% of Gen Z and millennial respondents had accessed retirement savings, compared with 46% of Gen X and 36% of pre-retiree baby boomers.
Payroll Integrations reported that 46% of Gen Z respondents had spent some of their retirement savings.
Despite strong markets, many workers said they were not feeling the upside.
Sixty-eight percent of Allianz respondents said their personal finances did not reflect market gains, and 59% said health care was their top savings priority.
Payroll Integrations found that 36% of respondents believed they waited too long to start saving for retirement, while another 36% cited rising costs of living as detrimental to their retirement confidence. Thirty percent pointed to market volatility, while 20% said they had withdrawn or borrowed from retirement plans.
Risk aversion is also climbing. F&G’s sixth annual Risk Tolerance Tracker survey showed that 77% of respondents became more financially cautious over the past year.
Anxiety was “most pronounced” among people in their 40s, with 81% reporting increased risk aversion.
Concerns about the future
While most workers are still contributing to retirement plans, gaps remain.
Payroll Integrations found that 87% of respondents contributed to employer-sponsored plans, but 27% of baby boomers did not — three times higher than the Gen X and millennial shares.
Concerns about the future of Social Security were highest among Gen X, with 46% worried that benefits would be not available when they retire. Only 20% of baby boomers shared that concern.
More than half of F&G respondents said they did not work with a financial professional. Ron Barrett, F&G’s chief distribution officer, said guidance is essential.
“In environments defined by economic uncertainty, the need for a comprehensive plan backed by a financial professional has never been more important,” Barrett said in a statement. “A trusted adviser can guide an ongoing retirement strategy that balances protection, growth and guaranteed income, so investors can move forward with greater confidence.”