17
November
2025
|
10:00 AM
America/New_York

Holiday Spending Cuts Highlight Growing Role of Independent Agents Amid Economic Uncertainty

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As Americans head into the holiday season, growing financial caution is prompting many to reassess their insurance needs and overall risk management strategies. This shift creates a timely opportunity for independent insurance agents 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.  

Financial Stress Extends Beyond the Holidays 

The survey reveals that 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 are also being delayed: 

  • 48% postponed or canceled a vacation
  • 46% delayed or skipped purchasing a car
  • 21% put off having a baby
  • 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, with: 

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

These spending shifts are part of a broader trend of financial stress that extends well beyond the holidays.  

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 global trade tensions
  • 25% believe the stock market is overvalued or in a bubble 

This unease is influencing financial priorities for the year ahead: 

  • 43% expect difficulty managing healthcare costs
  • 39% anticipate challenges paying off debt
  • 34% worry about saving for retirement
  • 31% are concerned about market volatility 

 Michael Tripp, Nationwide’s SVP Personal Lines Sales & Distribution, says this is where independent agents can make a meaningful difference:  

"When financial uncertainty sets in, people don’t just need information, they need reassurance. AI can offer data, but independent agents have the experience and perspective to translate it into real-world protection that fits a family’s budget and priorities. It's that personal connection and guidance that makes them feel secure." 

Insurance Confidence Hinges on Human Connection  

As consumers navigate economic uncertainty, many are turning to trusted sources for help understanding and managing their insurance needs. Nationwide’s survey reveals that 46% of consumers seek help or information about insurance products from an insurance agent, making agents the most relied-upon source, well ahead of friends and family (37%), social media (19%), or AI tools (17%). 

Despite the growing presence of digital tools, over half of consumers (56%) say they never use AI for information about home or auto insurance. This suggests that while technology may offer convenience, it hasn’t yet earned the trust required for more complex or personal financial decisions. 

“In a world full of digital noise, independent agents offer something that’s increasingly rare, real human guidance. Especially during times of economic stress, clients want to talk to someone who understands their situation and can help them make confident decisions about protecting what matters most,” added Tripp.  

Agents can use this insight to strengthen client relationships by: 

  • Offering personalized policy reviews to identify savings or gaps
  • Recommending tools like smart sensors that help prevent costly damage
  • Providing proactive outreach during seasonal or economic shifts 

In a world of rising financial anxiety, the human touch remains a powerful differentiator and a critical asset for agents looking to build trust and long-term loyalty. Agents looking to explore more insights from Nationwide’s 2025 Economic Impact Survey, view the full survey findings here. 

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.