Economic Anxiety and Holiday Spending Cuts Signal Opportunity for Financial Advisors to Engage Clients in Year-end Review Conversations

As Americans head into the holiday season, a growing sense of financial caution is reshaping spending habits and potentially long-term planning decisions—creating a timely opportunity for financial advisors to step in with guidance and support. According to Nationwide’s 2025 Economic Impact Survey, while 55% of Americans feel secure in their personal finances, 42% plan to spend less this holiday season compared to last year, signaling deeper concerns about the economy and personal financial stability.

“This shift in consumer behavior is more than just seasonal belt-tightening—it’s a reflection of broader financial stress that could impact long-term goals,” said Kevin Jestice, president of Nationwide Retirement Solutions. “The end of the year is a great time for financial professionals and plan sponsors to engage clients or participants using these insights to better understand their mindsets and proactively offer strategies that help them stay focused on their future.”

Financial Stress Extends Beyond the Holidays

The survey reveals that, compared to the beginning of this year, Americans are cutting back across the board:

• 47% are making fewer impulse purchases
• 41% are buying fewer luxury items
• 32% are opting for used or secondhand goods

Major life decisions or purchases are also being delayed. Four in ten (40%) of consumers have delayed or cancelled plans for major purchases because of economic conditions this year. Of these individuals:

• 48% postponed or canceled a vacation
• 46% delayed or skipped purchasing a car

One in five (21%) of consumers have delayed or cancelled plans for major life milestones because of economic conditions this year. Of these individuals: 

• 21% put off having children
• 19% postponed a wedding
• 17% delayed retirement 

Meanwhile, reliance on debt is rising. One in five Americans (20%) report increased debt usage over the past year. Of these individuals:

• 61% are carrying a credit card balance
• 23% are taking out personal loans
• 17% are borrowing from retirement accounts

“This is exactly the kind of moment where advisors can make a meaningful impact,” Jestice added. “Whether helping clients manage debt, adjusting retirement timelines or simply offering reassurance, financial professionals are uniquely positioned to guide people through uncertainty. Additionally, employer-sponsored retirement plans have an opportunity to meet employees where they are by introducing or promoting educational and planning resources to help balance today’s challenges with long-term goals.”

Lingering Pessimism Shapes 2026 Outlook

Despite current confidence, 35% of Americans believe the economy will worsen in 2026. Among those with a pessimistic outlook:

• 78% cite inflation
• 71% point to tariffs
• 25% believe the stock market is overvalued or in a bubble

This unease is influencing financial priorities for the year ahead. Of those who cite the following as financial goals:

• 43% expect managing healthcare costs will become more difficult
• 39% anticipate paying off debt will become more difficult
• 34% expect saving for retirement will become more difficult
• 31% believe protecting their portfolio from market volatility will become more difficult

What Financial Advisors Can Do Now

With only 25% of consumers surveyed currently working with a financial advisor, the data highlights a significant opportunity for engagement. Among those who do work with an advisor, nearly half (48%) say their advisor is their most trusted financial resource.

Survey respondents expressed interest in discussing the following topics with a financial advisor:

• Growing investments
• Creating long-term financial plans
• Retirement planning and income strategies
• Taxes and Social Security

Actionable Opportunities for Advisors and Plan Sponsors:

• Initiate year-end reviews focused on budgeting, debt, and retirement timelines
• Offer educational resources to help clients manage financial stress
• Promote employer-sponsored plan features that support financial wellness
• Use this survey data to personalize outreach and deepen client/participant relationships

Learn more about Nationwide’s 2025 Economic Impact Survey.

View an infographic or read a blog on this topic from Kevin Jestice.

Survey Methodology

Nationwide commissioned Edelman Data & Intelligence (DXI) to conduct a nationally representative online survey of 2,000 U.S. adults aged 18 and older from September 5–23, 2025. The survey was weighted to reflect the U.S. population by age, gender, region, and ethnicity. Edelman DXI adheres to all applicable research standards and guidelines.

This material is not a recommendation to buy or sell a financial product or to adopt an investment strategy. Investors should discuss their specific situation with their financial professional. 

Nationwide and Edelman are separate, non-affiliated companies.

This information is general in nature and is not intended to be tax, legal, accounting or other professional advice. The information provided is based on current laws, which are subject to change at any time, and has not been endorsed by any government agency. 

Nationwide Investment Services Corporation (NISC), member FINRA, Columbus, OH. Nationwide Retirement Institute is a division of NISC. 

Nationwide, the Nationwide N and Eagle and Nationwide Retirement Institute are service marks of Nationwide Mutual Insurance Company ©  2025 Nationwide

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