Keeping Ahead of Future Financial Strain: Some Americans are Living Like Frugal Retirees

Published on July 24, 2025

A self-directed IRA can help boost retirement confidence

Many Americans are worried about how market uncertainties and disparate economic forecasts (trade policies, tariffs, recession or no recession, and more) will affect their retirement. A March 2025 survey among more than 2000 people revealed that 86% of respondents feel the economy is uncertain and 58% think a recession is inevitable.

The result: Many are taking care to avoid accruing credit card interest and surprise fees on purchases and prefer certainty about the timing and amount of their bills. Additionally, more people are saving cash for emergencies.

The survey also revealed that many are seeking finance management tools and more long-term control over their finances. This behavior, which is usually attributed to retirees living on a fixed income, appears to be shared across age groups according to the survey. Consider that among the participants:

• Half (50%) want to keep cash available for unexpected expenses or financial uncertainty
• Two in five (41%) want to manage their budget with fixed, predictable payments
• Over a third (36%) are thinking more long-term than ever about their finances.
• They want greater transparency, predictability, and clarity from financial providers

Of course, we applaud any efforts to tighten up spending and save more for retirement—and to develop a stronger relationship with one’s financial advisors and financial institutions. There is also a decline in Americans’ confidence about their ability to reach their financial goals and support a comfortable retirement…leading some to adhere to a more “retiree” approach to their personal finances, regardless of age.

Confidence about retirement finances has declined

According to an Allianz Life survey, this confidence level has declined since 2020 from 83% to 70% (which is not surprising, considering the effects of the global pandemic and multiple wars among other events). On the upside, 96% say they know what they need to boost their financial confidence, which dovetails somewhat with the “retiree” mindset: setting financial goals and developing plans to achieve them, including long-term plans that detail how much money they will need and the timeframe for saving those funds.

However, among the Allianz Life respondents, fewer than half have a plan and more than half reported they don’t have enough saved in a retirement account, with millennials lagging far behind older cohorts in this regard. At least millennials have a longer time horizon to make up for that shortfall, given Americans’ lengthening lifespans (and concerns about having enough saved to cover greater longevity) as we wrote in this recent blog post.

Boost retirement confidence and savings with a self-directed IRA

For certain investors who understand alternative assets, opening a new self-directed IRA can help shake off the confidence blues and put them on the path to more financial freedom. As a retirement wealth-building strategy, self-direction enables investors to include a broad array of alternative assets within their retirement plans, build a hedge against stock market volatility, and boost retirement savings with nontraditional investments they already know and understand—and might already be investing in outside of their existing IRA or other retirement account.

All types of IRAs can be self-directed (Traditional, Roth, SEP, SIMPLE) and account owners can take advantage of investment opportunities more nimbly—since they are making all their own investment decisions—or invest in particular types of assets in which they have a strong interest or knowledge.

Feeling confident about an alternative asset you want to invest in? Our starter kits provide step-by-step instructions for opening and funding a self-directed IRA (as well as a Coverdell ESA, an HSA, or solo k), and you can always contact our team with questions at NewAccounts@NextGenerationTrust.com or 888-857-8058.