Why only 4 percent of Americans feel financially protected — and what you can do about it

Key takeaways

• Only 4% of Americans say their financial future is fully protected, even though 89% feel responsible for protecting their family's financial future.

• Financial confidence is declining and only 21% of Americans are considered "Protection Confident” compared to 26% in 2023.

• 46% of Americans are delaying important financial decisions until the economy feels more stable.

• Americans associate financial protection with having little or no debt, owning a home, maintaining emergency savings, saving for retirement and having insurance coverage.

• Building financial confidence starts with small, consistent actions.

The latest results from Mutual of Omaha’s 2026 Protection Index Survey — a proprietary research study conducted with quantilope — show that financial confidence has declined.

Many Americans are paying down debt, saving for retirement, and building an emergency fund while still asking, "Am I doing enough?"

Nearly everyone is carrying some level of insecurity about their financial future, even those who are trying to plan ahead. Economic uncertainty, fueled by persistent inflation, stagnant wages and a cooling job market, has led to many households delaying important financial decisions, and this year’s study points to a growing disconnect: Americans overwhelmingly feel responsible for their financial future but very few feel confident they’re on track.

Americans feel responsible for their financial future. So why don't they feel protected?

Nearly nine in 10 Americans (89%) say they feel responsible for protecting their family's financial future. However, only 4% say their financial future is fully protected. That's a striking disconnect, and one that reflects the financial pressures many households continue to face.

For younger adults, it may be buying a first home and navigating a difficult housing market. For working households, it means stretching each paycheck a little further as the cost of everyday essentials like groceries and childcare continues to rise. And for those nearing retirement, it might mean planning your retirement withdrawal strategy and balancing healthcare costs while trying to stay on track for retirement. No matter the stage of life, these challenges can make it harder to think beyond today's expenses and plan for tomorrow.

The good news? Feeling financially protected doesn't require perfection. Often, it begins with a few intentional steps taken consistently over time.

The state of financial confidence in America

This year's findings show that making smart financial decisions doesn't always translate to feeling secure.

Only 21% of Americans are now considered "Protection Confident," down from 26% in 2023, representing those who are financially prepared and assured in their ability to protect their future. Meanwhile, 14% are classified as "Protection Threatened," a group that feels significantly less prepared and more financially vulnerable. Together, these research findings suggest that more Americans are falling somewhere in the middle, with less certainty about where they stand financially.

One reason may be that many people are waiting for conditions to improve before taking action. Nearly half of Americans (46%) say they're delaying an important financial decision until the economy feels more stable, and 33% admit they either don't know where to start financially or simply haven't given financial planning much thought.

According to Nate Hobson, vice president of sales, Advisor Network at Mutual of Omaha, this is a common form of planning paralysis.

"Many people believe they need to wait until they have more money, more certainty or the perfect plan before taking action,” says Hobson. “But financial confidence is usually built through consistency rather than perfect timing. Even small steps today can make a meaningful difference over time."

Rather than waiting for the economy to change, focusing on the financial decisions you can control now may lead to greater confidence.

How Americans are trying to protect themselves

Americans aren't standing still, they're actively looking for ways to manage rising costs. According to the survey, the most common financial habits today include:

• Cutting non-essential spending (57%)

• Using rewards programs (54%)

• Comparing prices or switching providers (39%)

• Following a monthly budget (38%)

These are the kinds of small, everyday choices that can quickly add up over time. Cutting back on non-essential spending might mean consistently bringing your lunch to work instead of grabbing takeout, or even taking a few extra minutes to compare prices at the grocery store. Following a monthly budget could translate into planning your spending ahead of time or keeping a closer eye on where your money is going, while using rewards programs can help you get more value out of the purchases you're already making.

While these are all practical strategies, the research also suggests that many consumers are focused primarily on defensive money-saving tactics rather than building long-term financial security. Fewer Americans report taking actions such as:

• Investing regularly (27%)

• Automatically transferring money into savings (24%)

• Bundling financial products to reduce costs (20%)

When you’re too busy playing defense for short-term relief, you’re often putting long-term protection on the backburner, making it hard to build lasting financial confidence. Saving money is important, but building financial protection often requires balancing today's expenses with tomorrow's goals.

What financial security means to Americans

Financial security looks different for everyone. When asked what contributes most to feeling financially secure, respondents most often cited:

• Having little or no debt (34%)

• Homeownership (29%)

• Emergency savings (27%)

• Retirement savings (26%)

• Insurance coverage (26%) 

Income also shapes how people define financial security. Among households earning more than $100,000 annually, 42% identified retirement savings as a key source of financial security, while 37% pointed to homeownership.

Among households earning less than $50,000, only 14% cited retirement savings and 21% cited homeownership, while 30% said access to retirement plans and other tax-advantaged savings accounts contribute to their financial security.

These differences illustrate an important reality: financial protection isn't one-size-fits-all. Your priorities may change depending on your income, family responsibilities, age or stage of life. What's most important is building a plan that reflects your own goals and circumstances.

Three practical ways to strengthen financial protection

 Building financial confidence doesn't have to translate to cutting out everything you enjoy. It's not about saying no to dinner with friends, never ordering takeout again or now saying no to the coffee shop that's on the way to work. It's about being more intentional with the choices you continue to make, so your spending reflects your priorities.

Small changes are more effective than overly restrictive budgets that are difficult to maintain. Progress doesn't happen overnight, but building consistent habits can create momentum.

1.     Create a small financial cushion

Unexpected expenses happen. Whether it's a car repair, medical bill or temporary loss of income, even a modest emergency fund can reduce financial stress and help prevent relying on credit cards or loans. If saving several months of expenses feels overwhelming, start with a smaller milestone. Consistency matters more than the starting amount.

2. Put good financial habits on autopilot

One of the easiest ways to make progress is by removing the need to make the same decision every month. Consider automating:

• Savings contributions

• Retirement plan contributions

• Investment deposits

• Bill payments

Automatic habits can help you continue building financial security even during busy or uncertain times.

2.     Protect what you're building

Saving money is only one part of financial protection, and protecting the people and assets that matter most is equally important. Depending on your life stage, different financial products may help strengthen your overall plan.

If you're raising a family, term life insurance can provide financial protection during your highest earning and caregiving years, helping replace income if the unexpected happens.

If you're focused on covering final expenses, guaranteed whole life insurance may help ensure loved ones aren't left with the financial burden of funeral costs and other end-of-life expenses.

If you're approaching or living in retirement, an annuity may help provide a reliable stream of income that can complement other retirement resources and reduce uncertainty. A financial professional can help determine which options best fit your goals and circumstances.

It's easy to keep putting this stuff off when everything feels fine. Before you know it, it's one of those things you'll "get to later." But all it takes is one unexpected moment, whether it's a major car repair, an unexpected layoff or a sudden health issue, to completely change your financial picture. Taking a little time to review your coverage now can help you be better prepared for whatever comes next and keep a temporary financial setback from turning into a much bigger financial problem.

What would you do with an extra $1,000? 

One question from the Protection Index Report offers an interesting window into Americans' financial priorities. If they unexpectedly received $1,000:

• 25% would pay down debt

• 21% would add it to savings

• 14% would use it for everyday expenses

• 9% would invest it

The responses also revealed important generational differences. Gen Z respondents were just as likely to invest the money as they were to spend it on everyday expenses (20% each), while Baby Boomers were the generation most likely to save it (29%).

Ask yourself: If you unexpectedly received $1,000 today, what would you do with it? Your answer may reveal both your current financial priorities and where additional planning could strengthen your financial resilience.

So where do you start?

It's understandable to feel uncertain in today's economic environment. But financial protection isn't achieved through one perfect decision or by waiting for the "right" time.

Instead, confidence often grows through small, intentional actions repeated over time: building savings, creating good financial habits, managing debt and protecting the people and goals that matter most.

*About this survey: Mutual of Omaha worked with research vendor, quantilope, to conduct The Protection Index survey. This research study had a sample size of 1,000 respondents aged 18-80. Research was conducted in a 10-minute online survey from May 15-19, 2026. All data included in this report are based on Mutual of Omaha proprietary research unless otherwise noted.

Disclosures:

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