2026 F&G Risk Tolerance Tracker: Rising Caution Among US Investors Amid Cost Pressures, AI Concerns, and Retirement Insecurities

Financial advisors are navigating a shifting landscape as American households adopt more conservative approaches to investing, driven by persistent living expenses, emerging technologies, and doubts about long-term income sources.

A recent comprehensive study from F&G Annuities & Life reveals that economic strains have deepened risk aversion. In the company’s sixth annual Risk Tolerance Tracker, released January 28, 2026, over three-quarters (77%) of participants indicated heightened financial prudence compared to the previous period—a notable uptick of four percentage points.

This evolution signals that elevated daily expenses have transitioned from fleeting issues to core elements shaping extended financial strategies and security preparations.

Chris Blunt, CEO of F&G, emphasized the implications: Affordability strains now exert prolonged influence on retirement readiness. Households grappling with increased routine expenditures often experience amplified stress precisely when focusing on future stability becomes essential. The latest research highlights widespread adjustments in risk perception and strategy, underscoring the value of deliberate actions to foster greater assurance in personal finances.

Generational Pressures Peak in Midlife

Those aged 40-59 exhibit the strongest shift toward conservatism, with 81% reporting reduced appetite for financial exposure—the peak among age groups. This cohort juggles ongoing home loans, family obligations, and accumulating resources for later years.

Broader worries about post-work income affect 66% overall, fueled by macroeconomic conditions. Distrust in Social Security persists, with nearly one-third of all adults questioning its availability in their retirement phase; this figure climbs to 40% for midlifers.

Gen X displays particular skepticism, as 46% express doubts about the program’s viability, contrasting sharply with only 20% among Baby Boomers. This disparity presents a prime window for advisors to engage those nearing retirement transitions.

Healthcare Emerges as Major Concern

While inflation tops the list of worries at 48% (a slight decline from prior levels), expenses related to medical care and extended support have surged to second place at 31%, an eight-point annual rise.

Additional pressures include elevated taxation (25%), utility costs (24%), recession possibilities (23%), Social Security reliability (22%), and homeownership affordability (21%). This diverse array of anxieties drives many to reevaluate safeguards and future revenue streams.

Over half (56%) fear artificial intelligence might harm their economic position, and 49% anticipate challenges in employment markets—both areas showing the steepest increases year-over-year. Recession fears linger for 70%.

Opportunity in Guidance Amid Growing Needs

Despite escalating concerns, 54% of individuals lack engagement with a financial expert.

Yet attitudes are evolving positively toward innovation: 48% express greater openness to novel financial vehicles, rising to 53% within Gen X.

Proactive measures are evident, including boosted savings rates, delayed retirement dates, side income pursuits, and tighter spending controls.

Millennials lead adaptations, with 73% modifying portfolios in recent months for enhanced resilience. Gen X follows at 55%, while retirees lag at 34%—an opportunity for sustained professional involvement.

Clients with advisor support act decisively far more often (67% versus 39% without).

Ron Barrett, Chief Distribution Officer at F&G, noted the enduring lesson from successive surveys: Uncertain times amplify the necessity for robust, advisor-supported strategies. Professionals assist in filtering distractions, evaluating true risk exposure, and crafting balanced approaches that incorporate safeguards, potential appreciation, and reliable income streams—empowering clients to advance confidently regardless of market fluctuations.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.