Americans' Top Financial Concerns
Americans identified unexpected medical bills as their top financial concern, with 55% saying they worried about them the most. Job loss was a close second, with 53% expressing concern. These fears aligned with feelings of unpreparedness — 40% said they were least prepared for medical expenses, while 37% felt unready for job loss.
Gen Z was the most likely to feel unprepared for medical bills, with 44% saying they would struggle to cover them. Millennials and baby boomers followed at 40%, while 36% of Gen X reported the same concern.
Economic uncertainty over the past year has intensified financial worries. Job loss became a greater concern for 38% of Americans, while 27% reported growing fears about medical bills. Inflation also heightened concerns about affording major home (25%) and vehicle repairs (24%). Financial stress took a significant emotional toll, with 69% saying money worries impacted their mental health. Gen Z felt these effects the most at 76%.
Relationship tension was another major consequence, affecting nearly half of Americans (47%). Work-related impacts added to the burden, with 43% saying financial concerns influenced their job performance or career decisions. Gen Z faced the greatest challenges, as 62% reported relationship strain, and 60% experienced career-related impacts.
Younger generations also felt the least prepared for major financial disruptions. More than half of Gen Z (51%) were unprepared for the death of a household earner, the highest among all age groups. Additionally, 40% of millennials and 38% of Gen Z felt unprepared for job loss.
Lack of preparedness often translated into real financial struggles. Over a third of Americans (37%) had to borrow money — upwards of $4,300 — to cover an emergency. Gen Z was the most likely to experience a significant financial crisis in the past year at 39%.
Whether postponing homeownership, career changes, or starting a family, money concerns also shaped key milestones for many. Financial uncertainty led 48% of Americans to delay a major life decision, with millennials feeling this impact the most (56%).
Do Americans Have Enough Savings to Handle a Crisis?
Americans had mixed feelings about their financial preparedness compared to five years ago. Gen X felt the least secure, with 42% saying they were less financially prepared for an emergency than they had been in the past. In contrast, younger generations expressed more confidence — 42% of Gen Z and 38% of millennials reported feeling more financially secure than they did five years ago.
The average American had $9,899 in emergency savings. Only 29% of Americans had more than $10,000 set aside. Gen Z had the lowest savings, averaging $7,317, while millennials ($10,568) and Gen X ($10,274) held a few thousand more.
Baby boomers reported $9,296 in savings but were the most likely to be able to sustain themselves long-term — 52% said they could last six months or more without income, compared to 41% of Gen X, 33% of millennials, and just 24% of Gen Z.
Some Americans had little to fall back on in an emergency. One in 16 had less than $500 saved, with Gen Z the most likely to be in this position (12%). Nearly 1 in 5 Gen Z respondents said they would run out of savings in under a month if they lost their income source.
To prepare for unexpected expenses, many people sought additional sources of income. Taking on a second job or side hustle became a common strategy for 60% of Americans, with Gen Z leading the trend at 68%.
When faced with an emergency, Americans had varying strategies to cover expenses, from relying on savings to taking out a personal loan. On average, they reported being able to pay $4,270 out-of-pocket for an unexpected financial crisis. However, more than 1 in 3 said they couldn't cover an unplanned $1,000 expense without help.
While Gen Z was the least likely to use credit cards to cover emergency expenses — only 41% would rely on one — they were the most likely to borrow from family or friends (38%). Despite more Gen Z respondents feeling financially prepared compared to five years ago, their savings remained lower than those of older generations, making outside assistance a common fallback.
Misconceptions About Life Insurance and Emergency Planning
Many Americans saw life insurance as a way to replace lost income for their family. Nearly half (45%) said they would consider purchasing a policy if it could help cover daily expenses in an emergency, with Gen Z showing the most interest at 51%. Millennials were the most likely to have already factored life insurance into their financial planning, with 34% saying they had considered it as part of their strategy.
Despite its intended purpose, not all Americans understood how life insurance works. More than 1 in 4 (28%) assumed it covered unexpected medical bills. Almost a quarter (24%) believed it could settle current debts. Over 1 in 10 thought it provided financial protection in case of job loss. While not the core benefit of life insurance, certain types of policies can also serve as a financial resource during one's lifetime with access to cash value or living benefits in certain cases, such as serious illness or loss of employment.
Younger generations were the most likely to hold these misconceptions: 36% of Gen Z and 32% of millennials believed life insurance was meant for current medical expenses. Similarly, 14% of Gen Z and 11% of millennials incorrectly assumed it could serve as a financial safeguard against job loss. In reality, life insurance is designed to provide long-term financial protection for beneficiaries after the policyholder's passing.
Strengthening Your Financial Protection
Unexpected costs can mess up even the most carefully planned budgets, and many Americans don't feel ready to handle them. While saving money and planning ahead can help, many people — especially younger generations — still feel unprepared. Simple steps like setting up an emergency fund and looking into financial protection can make a big difference. With the right approach, anyone can feel more confident about handling financial surprises in the future.
Methodology
Western & Southern surveyed 1,002 Americans in February 2025 to explore their biggest financial concerns and preparedness levels. The generational breakdown included Gen Z (15%), millennials (50%), Gen X (25%), and baby boomers (10%).
About Western & Southern Financial Group
Founded in Cincinnati in 1888 as The Western and Southern Life Insurance Company, Western & Southern Financial Group, Inc., a Fortune 500® company at No. 284, is the parent company of a group of diversified financial services businesses. Its assets owned ($80 billion) and managed ($42 billion) totaled $122 billion as of Sept. 30, 2024.1 Western & Southern is one of the strongest life insurance groups in the world. Its seven life insurance subsidiaries (The Western and Southern Life Insurance Company, Western-Southern Life Assurance Company, Columbus Life Insurance Company, Gerber Life Insurance Company,2 Integrity Life Insurance Company, The Lafayette Life Insurance Company, and National Integrity Life Insurance Company) maintain very strong financial ratings. Other member companies include Eagle Realty Group, LLC; Fabric by Gerber Life; Fort Washington Investment Advisors, Inc.;3 Gerber Life Agency;4 IFS Financial Services, Inc.; Touchstone Advisors, Inc.;3 Touchstone Securities, Inc.;5 W&S Brokerage Services, Inc.;3,5 and W&S Financial Group Distributors, Inc.6 Western & Southern is a title sponsor of several major community events every year. From 2002 to 2023, it served as title sponsor of Cincinnati's longtime professional tennis tournament — now named the Cincinnati Open — an ATP Masters 1000 and WTA 1000 event and one of the world's largest tournaments. The company continues to serve as a major sponsor of the event.
1 The financial information presented here is preliminary and unaudited.
2 Gerber Life is a registered trademark. Used under license from Société des Produits Nestlé S.A. and Gerber Products Company.
3 A registered investment advisor.
4 In the State of California, Gerber Life Agency, LLC is known as and does business as Gerber Life Insurance Agency, LLC.
5 A registered broker-dealer and member FINRA / SIPC.
6 W&S Financial Group Distributors, Inc. (doing business as W&S Financial Insurance Services in CA).
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