Americans are more engaged with their finances than ever, but a new wave of research suggests that engagement has not translated into confidence. The inaugural Financial Confidence Report from Edelman Financial Engines, based on an October 2025 survey of 2,000 Americans conducted by Greenwald Research, found that 84% of respondents prefer to play an active role in their retirement planning and savings decisions. However, only 40% of workplace retirement plan participants say they know exactly how their retirement savings are invested.
This disconnect is what Michael Liersch, chief planning officer at Edelman Financial Engines, calls a "financial confidence gap." "The most important aspect of attaining financial confidence is knowing what you don't know," Liersch said. "So many Americans want to be in the driver's seat of their financial lives but aren't always sure where to turn."
The report ties much of this uncertainty to financial anxiety. Nearly half of those surveyed said they feel stressed, with money-related concerns among the leading drivers. Inflation is pushing people toward impulsive decisions: 38% said they made a major purchase sooner than planned because they worried prices would rise further, and among Americans under 50, that figure climbs above 50%. Additionally, nearly half of Americans report making a financial decision they later regretted because of something they saw on social media.
Retirement anxieties compound the picture. Roughly 75% of non-retirees surveyed said they are concerned about potential Social Security benefit cuts, a worry that aligns with the 2026 Trustees Report, which projects the Old-Age and Survivors Insurance trust fund will run dry in late 2032, at which point payroll taxes would cover only 78% of scheduled benefits. This macro uncertainty is reflected in the retirement crisis concern that has hit 80% in other recent surveys.
Katie Klingensmith, chief investment strategist at Edelman Financial Engines, described the tension clients feel when faced with a split screen between the macro picture and the household picture. "You might open your 401(k) statement and feel encouraged by your progress, then head to the grocery store and feel a completely different sense of stress because you're paying more than you did just a few months ago," she said. "Those opposing signals can make it hard to know where you really stand financially."
A separate Gallup study conducted for Edward Jones, based on a survey of more than 5,000 U.S. adults in March and April, found that confidence in managing current finances rises sharply with age—from 25% of Gen Z adults to 54% of baby boomers. Confidence in managing future finances hovered between 25% and 37% for every age group. Even Gen Xers approaching retirement remain uneasy: 39% worry about whether their current and future savings will last, and only about one-fifth say they have a great deal of control over their financial future. This may reflect the sandwich generation's burden of supporting aging parents and children while trying to build nest eggs of their own.
The Edelman report frames financial planning as the clearest lever for narrowing the confidence gap. Among those surveyed, more than 40% reach out to their financial planner before making major decisions, and 31% do it early—before they make any major financial decision. Similarly, in the Gallup study, 59% of Gen Xers without a financial retirement plan reported being worried about their current and future savings, compared to just 25% of those who have one. This echoes findings from other research, such as the confidence among widowed Americans who still seek guidance.
"Confidence is not a binary concept, and people can make mistakes regardless of their income level or where they are in their financial journey," Liersch said, pointing out that big savers can score poorly on retirement readiness, just as those with more modest means may be well situated financially. For advisors, the message is clear: even the most engaged clients may need help translating their interest into informed action. As the industry grapples with AI-driven changes in advisor capacity, the demand for human guidance remains strong.
