American households have never been wealthier on paper, but the composition of that wealth is raising concerns among advisors and economists. According to Allianz Research's 17th annual Global Wealth Report, released September 29, 2026, global household financial assets rose 8.6% in 2025 to a record €268.4 trillion, roughly $300 trillion. The United States accounted for 51.4% of the global increase, driven by a stock market that has climbed about 95% since the end of 2022.
Yet the same market surge that boosted client portfolios has left them more exposed to a downturn than at any point in recent history. US households now hold 61.4% of their financial assets in securities—shares, bonds, and funds—the highest proportion among major economies, compared with an average of about 46% in Western Europe. That concentration has paid off handsomely during the bull run, but it also means a market correction would hit American balance sheets disproportionately hard.
Allianz's chief economist and CIO, Ludovic Subran, noted that the record masks a more fragile reality. While nominal global financial assets have grown nearly 50% since 2019, real growth after inflation is just 23%, and purchasing power is only 5% above its 2021 level. Fresh savings globally fell 5.4% in 2025 to €4.1 trillion, with valuation gains accounting for roughly four out of every five euros of new household wealth. In North America, new savings declined 17.5% as households pulled back on purchases of securities, insurance, and pension products.
The AI risk scenario
Allianz Research has quantified the downside risk tied to AI-related stock valuations. In a scenario where corporate earnings disappoint and AI expectations prove overly optimistic, a 25% correction in the S&P 500 could erase approximately $27 trillion from US household wealth—about 14% of total net worth. That shock could push the US economy into recession, with GDP growth in 2027 coming in 2.0 percentage points below baseline. A milder 15% correction would still reduce household net wealth by 5.8% and shave 0.6 percentage points off annual GDP, though a V-shaped recovery could follow within six to nine months.
The losses would not be evenly distributed. The top 10% of US households own 87.3% of privately held corporate equities and mutual fund shares, according to Federal Reserve distributional financial accounts data cited by Allianz. More than 55% of defined contribution pension entitlements are also concentrated in the wealthiest decile. For advisors serving mass-affluent clients, the exposure is smaller but still meaningful, and the report suggests having the conversation now rather than after a correction begins.
Portfolio structure vs. savings discipline
The report highlights a key divergence between US and European wealth growth. North American financial assets grew at an average annual rate of 6.9% over the past decade, versus 3.9% in Western Europe. Interestingly, Western European households actually saved more—adding fresh savings equivalent to 2.4% of existing assets annually, compared with 2.1% for North Americans. The difference was market performance: valuation gains accounted for 71% of North American asset growth but only 36% in Western Europe.
Germany offers a stark example. German financial assets grew 6.0% annually, but that required fresh savings of 3.9% of existing assets per year—nearly double the US rate—with valuation gains contributing only 33%. For US advisors, the lesson is that portfolio structure matters as much as savings discipline. US household equity exposure now stands about 7 percentage points above its long-term average, raising questions about whether current allocation levels are appropriate.
The report also touches on the labor market impact of AI, estimating that roughly one in four jobs across major economies could be affected over the next three years. In the US, that translates to about 52.5 million jobs. The transition could see job displacement temporarily outpace new job creation, as firms deploy technology faster than workers can retrain.
For advisors, the data reinforces the need to stress-test portfolios against AI-driven market shocks. The record ETF inflows and strong broker-dealer profits reflect the current optimism, but the Allianz report suggests that a correction could be swift and severe. As household costs reshape retirement saving economics, advisors may need to reconsider how much equity risk their clients can truly afford.
