Why over half of Americans feel financially frozen: study

Half of Americans feel “financially frozen,” according to new research.

A survey examining the financial behavior and strategies of 2,000 Americans found that 53% of respondents feel stuck, overwhelmed or unsure about what to do when it comes to their finances. 

Respondents said their biggest financial concerns are paying for necessities (36%) and sticking to a monthly budget (36%). 

Additionally, many worry about long-term financial security. Almost a quarter (22%) are worried about their savings strategy, while others said they’re feeling stressed about retirement (21%), loans and debt payment (20%), and investing (9%).

The survey conducted by Talker Research on behalf of Zoe Financial showed that one major reason people feel “financially frozen” is the overwhelming amount of information on the internet and social media.

Respondents reported feeling most helpless when navigating inflation and the cost of living (25%), investing (24%), and budgeting and saving strategies (23%).

That lack of confidence manifests in regrets down the line. Three in four (77%) said they wish they would have done things differently in the past that could have made their financial future better. 

The areas respondents wish they would have taken more action in are savings strategies (55%), sticking to a stricter monthly budget (41%), and investing (38%). 

“It can be challenging to navigate an ever-changing world with financial confidence,” said Andres Garcia-Amaya, CFA, Zoe Financial’s Founder & CEO. “Finding advice you can trust isn’t always easy, but with the right help, people can feel more in control of their financial journey.” 

While 83% say they would like to be better prepared financially, more than half (53%) don’t know where to start or are worried that they’ve waited too long to seek financial advice to make a real difference in their future. 

The average person surveyed said they didn’t take their retirement planning seriously until age 38, despite believing the ideal time to get serious about it is 29.

The good news is that younger generations are taking steps to prepare for their financial future early on. Gen Z respondents actively began planning for retirement at age 25, compared to millennials at age 34. Both are earlier than older generations: Gen X didn’t start until age 38, while baby boomers waited until age 43.

Only 26% of respondents said they have a financial advisor. For those who don’t have one, the biggest blocker to hiring one is a misconception that financial advice and success are only for the affluent. 

Thirty-nine percent of those who haven’t considered finding a financial advisor believe they can’t afford it, while 24% think they don’t have enough money for it to be necessary (24%).

Other concerns cited by participants were fears about being scammed (19%) and misinformed beliefs that financial advisors (39%) and custom portfolio strategies (48%) are only for rich people. 

“Finances are deeply personal and often emotional, so many people hesitate to blindly trust technology with their financial future,” Garcia-Amaya added. “People still think financial advice and investment management are only for the wealthy, which can discourage them from seeking guidance. The truth is, that used to be the case, but we believe in changing the industry. By enabling more people to find the right advisor for their needs, we’re trying to help them to take the first step toward financial confidence and long-term success.”

As AI becomes more prevalent, one truth remains in the financial industry: People still value the human touch and aren’t ready to give it up. Thirty-seven percent said they would feel uncomfortable relying solely on AI-driven tools to help with their finances, preferring real people. Most respondents consider human financial advisors more trustworthy (58%), comprehensible (50%) and effective (47%) than AI-driven tools. 

When asked to rank their AI concerns regarding personal finance, respondents said they don’t trust new technology, are concerned about how sensitive data would be stored and used, and are unsure how to use AI effectively. 

Top areas Americans say they lack financial knowledge

• Inflation and cost of living adjustments (25%)
• Investing (24%)
• Budgeting and saving (23%)
• Retirement planning (22%)
• Debt management (18%)
• Social Security (17%)
• Tax planning (16%)
• Estate planning (15%)
• Health care and insurance (15%)
• Homeownership (12%)

Survey methodology:

Talker Research surveyed 2,000 Americans; the survey was commissioned by Zoe Financial and administered and conducted online by Talker Research between Feb. 13 –18, 2025.