New study: Pre-retirees are more money stressed heading into 2026; here are expert tips to help

It’s no surprise that given the current macroeconomic landscape, pre-retirees are feeling anxious about their finances. And going into 2026, a whopping 48% of them are even more stressed than they were at the beginning of 2025, according to Allianz’s 2026 New Year’s Resolutions Study.

According to the study, there is no shortage of reasons for this anxiety. Day-to-day costs, low income, insufficient savings for an emergency fund, excessive debt, high health care costs, and lack of job security are all sources of concern for this cohort.

Kelly LaVigne, VP of consumer insights, Allianz Life Insurance Company of North America, told Nifty50+ that the findings are “concerning.”

Yet, not all is gloom and doom. Experts say that here are steps Americans can take to alleviate these concerns and build their financial confidence this year, for instance, by establishing financial discipline with the help of a financial professional and developing a written long-term financial strategy.

Decreased confidence in retirement goals

Another key finding of the study is that 27% of Americans say they have “decreased confidence in their ability to meet their retirement goals compared to last year.”

Steve Sexton, CEO of Sexton Advisory Group, said that this comes down to a combination of rising costs and shifting expectations.

As he put it, retirement is so much more than just replacing income, these days, it also entails covering healthcare, longevity, housing, and lifestyle expenses that are increasing faster than most portfolios.

“Add in market volatility and uncertainty around Social Security benefits and Medicare, and it’s natural to see why people feel much less confident. For many pre-retirees, it’s likely the margin for error feels much smaller,” he added.

The numbers speak for themselves: Resume Now’s new 2026 Cost-of-Living Crunch Report, found that 92% of Americans have cut back spending in 2025, including on groceries and healthcare, while 49% “have dipped into savings just to get by.”

Austin Kilgore, analyst with the Achieve Center for Consumer Insights argued that this past year has evolved from one of “uncertainty” to one of financial stress and continuing increasing costs.

“For those families treading water financially, the credit card used to be the buffer. Now, that buffer is full — and the cracks are showing with credit card debt at all-time highs,” he said.

There are notable generational differences for the decreased confidence in the ability to reach retirement goals: Gen X (38%) and Gen Z (32%) are more likely than millennials (24%) or boomers (20%) to feel this way.

“For those families treading water financially, the credit card used to be the buffer. Now, that buffer is full — and the cracks are showing with credit card debt at all-time highs.” — Austin Kilgore, analyst, Achieve Center for Consumer Insights

According to LaVigne, for GenX in particular, retirement is starting to feel imminent, and while for so much of our lives, retirement is a far-off idea, they are quickly approaching retirement age.

“They may have recently taken an honest look at their finances and had a reality check about their progress toward achieving their dream retirement,” he said.

Meanwhile, boomers have more clarity.

As Bobbi Rebell, CFP, consumer finance expert at CardRates.com, noted, these Americans may not have reached all their financial hopes and dreams, but are mostly in good shape thanks to a rising stock market and home values that have gone up over their lifetime.

In addition to the lack of confidence, 21% of Americans also feel they are further from reaching their retirement goals than they were a year ago.

“Financial stress often is driven by overwhelming uncertainty about the future,” said LaVigne. “Many people stress about their financial future because it feels like a black box – so much is out of our control. But too many people bury their heads in the sand rather than do the hard work of examining their finances and setting tangible long-term goals.”

He said one of the important things is to recognize where you can exert control over your finances to decrease financial stress.

What can pre-retirees do to alleviate stress?

Experts say there are many steps, small and big, pre-retirees can take to not only unburden themselves mentally, but also help them reach their retirement goals.

Get down to business with a detailed financial strategy

This can help make long-term goals like retirement feel less abstract and more achievable, Allianz’s LaVigne said.

A written financial strategy, created with the help of a financial professional, will help you stay on track toward long-term goals like retirement and reduce stress, he said. This will also enable you to review it when economic realities like increasing health care costs are causing anxiety.

Save with discipline

Doug Carey, CFA, founder and owner of WealthTrace, said the number one piece of advice he gives his clients for meeting retirement goals is to begin saving early and consistently to a 401(k) plan or IRA.

“There is no easier way to build net worth than this strategy,” he said. “Here is one example of how powerful this strategy can be: If a person contributes $10,000 per year to a 401(k) account at an 8% return for 30 years, she would have $1.1 million saved. If a person contributes $15,000 per year, she would have $1.7 million.”

Be flexible and plan for healthcare early

Building into the way you think about retirement can also be helpful.

“It doesn’t have to be all-or-nothing,” said Sexton.

For instance, you can consider a phase retirement, part-time work, or delaying Social Security can improve your outcomes.

Planning for healthcare early is also crucial as healthcare expenses prove to be the biggest stress drivers in retirement, he said.

“Understanding your options as it relates to Medicare, HSAs, and long-term care options ahead of time can alleviate this anxiety and fear,” Sexton added.

Focus on what you can control

Rebell said that each of us is in an economy of one, something we need to remind ourselves of when we get overwhelmed thinking about all the things going on in the economy that we can’t control.

Instead, focus on what you can control, for instance, by automating retirement contributions.

“Tune out the noise and put yourself and your family first,” she said.