Financial worries have risen in seven of eight countries surveyed year on year and now tie with health as the leading personal concern worldwide, German insurer Allianz reported on July 6.

The findings, drawn from a survey of 10,000 people across 10 countries conducted with Ipsos between April and June, point to a widening affordability gap, with only 5% of respondents describing themselves as financially secure and able to save and invest significantly, while nearly one in three struggle to make ends meet.

Finances and health each ranked as the top global concern at 48%, some 13 percentage points ahead of the next worry, the future, at 35%. The two leading concerns were separated by 0.1 of a percentage point, with health at 48.4% and finances at 48.3%, according to "The Allianz 3am Report 2026," based on the Ipsos What Worries the World Study.

Finances ranked among the top three concerns in nine of the 10 markets, peaking at 64% in Indonesia. The worry moved up the ranking in Brazil, France, Germany and the UK, and remained stable in Italy. In Great Britain, finances reached 49%, while in Germany, the figure was 44%. Concern was strongest among Millennials and Gen Z, for whom finances outranked health, whereas Boomers and Gen X prioritised health.

Living, money worries, dominant stress

Within the category, the rising cost of living was the dominant driver at 71%, up 3 percentage points year on year, followed by insufficient income at 55%, up 4 points. Unexpected expenses were cited by 47%, saving for the future by 44% and job loss by 31%. The intensity of cost-of-living concern varied from 60% in Brazil to 81% in Australia.

The report found households increasingly on the defensive. Some 34% of respondents said they had cut non-essential spending, while 22% focused on saving for essential future needs. On the global average, 38% described themselves as managing but occasionally facing challenges, 27% as stable and able to meet needs comfortably, 20% as struggling but able to cover basics with difficulty and 11% as struggling significantly. Gen X reported the highest strain of any age group.

Food accounted for the largest share of household budgets at 77%, followed by housing at 49%, transportation at 35%, insurance at 34% and health and wellness at 28%. Indonesia diverged from the pattern, with respondents prioritising savings at 44% and education at 42% after food and groceries at 84%. Younger generations deprioritised insurance in favour of clothing, which entered the top five spending categories for Gen Z.

Boomers less stressed

Saving remained difficult for many. Nearly one in three people said they could not save at all, and only 12% achieved a savings rate above 20%. On the global average, 27% saved less than 10% of income, 24% saved between 10% and 20%, and 32% were unable to save at the time of the survey. Across Europe and the UK, about 34% said they could save 10% or more. Indonesia again showed a different pattern, with 56% reporting savings at that level. Gen Z and Millennials set aside more than Boomers and Gen X, with 14% of Gen Z saving above 20% against 8% of Boomers.

Asked what had changed their financial situation over the past two years, respondents most often cited economic factors at 37% and changes in living expenses at 34%, followed by unexpected expenses at 29% and shifts in income at 25%. Unexpected expenses weighed most heavily on Indonesia at 52%, while changes in debt levels featured prominently in Brazil and Turkey.

Sentiment about the financial future leaned slightly towards pessimism. Some 34% of respondents described themselves as neutral, 25% as optimistic and 7% as very optimistic, against 24% pessimistic and 11% very pessimistic. Indonesia reported the highest share of optimists at 60%, while France reported the lowest at 17%. Across age groups, 42% of Gen Z expressed optimism against 21% of Boomers. Turkey was the most pessimistic market.

Uncertainty

During uncertain times, cutting unnecessary expenses ranked as the primary financial priority at 34%, followed by saving for essential future needs at 22% and building an emergency fund at 17%. Only 6% prioritised securing investments and 5% ensuring adequate insurance cover. Gen Z showed the most balanced approach, with 28% focused on cutting costs against 38% for Gen X.

Allianz Research found that only 18% of people had advanced financial knowledge, while 26% had only a basic understanding. The insurer has launched a free, open-access digital learning platform, "Allianz School For Life", offering content on budgeting, investing and risk management tailored to different life stages, with dedicated journeys for children, teenagers and adults.

"As more household budgets are focused on essentials, many people find it harder to save, plan ahead and feel in control of their future," said Bernd Heinemann, head of group strategy, marketing and distribution at Allianz SE.