Americans Are Abandoning Dreams of Home Ownership, Retirement

Americans are running faster and faster toward their financial goals, but many feel like they’re spinning on a hamster wheel.

While some investors said they are comfortable in their jobs and saving for retirement, others think they’re in a losing battle. Across age ranges, roughly 90% of Americans are anxious broader economic forces will impact their long-term financial plans, according to U.S. Bank’s latest wealth survey. Eight in 10 of the 5,000 people surveyed said they feel anxious about stock market fluctuations. The data show a growing confidence gap that will require advisors to emphasize financial education with clients — not solely portfolio management.

“Even if the data suggest you are doing well, it doesn’t feel that way,” U.S. Bank CIO Eric Freedman said at a news conference in New York City last week. “When you start entering into a system like an equity market or the broad investment sphere, that’s where people feel a lot less agency, a lot less control, even though we’re at all-time highs.” 

It’s Always Something

The market has been anything but calm this year. Liberation Day tariffs, geopolitical tensions, and weak jobs reports have created volatility, compounding the stress. “People have never had control of the stock market, never had control of the economy,” said Scott Ford, president of wealth management at U.S. Bank. “But it’s just been a lot [of volatility] all at the same time.” The survey found:

• About 20% of Gen Zers and millennials have given up on retirement, along with 25% of Gen Xers and 9% of boomers.

• A quarter of Gen Zers and millennials say they can’t afford to raise children.
• Some 90% of survey participants believe homeownership signals success, but a quarter doubt they’ll ever own a home.

“It’s one thing to cut back on day-to-day finances,” said Sarah Darr, U.S. Bank’s head of financial planning. “But to hear that it is impacting their retirement timeline, their residency … that really speaks to the magnitude of how much these constraints and these economic factors are really taking a toll on them.”

Knowledge is Power. Still, there is optimism. The survey found that financial confidence improves significantly with an advisor, even for clients with less than $50,000 in assets. Freedman said advisors should focus less on chasing high-asset clients and more on education with clients across wealth ranges. “Firms tend to want to be involved with clients with high AUM because of the high margins,” he said. “But focusing more on education empowerment would be important for us as a community.”