The American Dream is being redefined. For most Americans, it now starts with financial survival. A new TruStage study finds fewer than half of Americans believe they are better off than their parents.
The 2026 What Matters Now study, conducted across 8,813 US consumers, found financial stability has replaced traditional milestones as the country’s defining aspiration. The three most common definitions of the American Dream were retiring comfortably (35%), being debt-free (34%), and providing for a family (34%).
Priorities split sharply by generation. Boomers ranked being debt-free (51%) and having emergency savings (44%) highest. Homeownership topped the list for Millennials (30%) and Gen Z (28%).
The retirement anxiety in the report’s findings is consistent with broader industry data. Allianz Life’s 2026 Annual Retirement Study found 67% of Americans are more worried about running out of money than dying. The figure is up 10 points from 57% in 2022, with Gen Xers logging the sharpest concern at 73%.
One of the study’s most striking findings concerns the 21% of respondents who identify as neurodivergent. This group is 75% Gen Z or Millennial and reported higher financial anxiety across nearly every category. This held true despite similar income levels and higher employment rates than neurotypical peers.
Some 34% of neurodivergent consumers said they feel anxious about their financial situation. The figure compares with 22% of neurotypical peers. Nearly half (46%) said they worry about job loss, against 34% of peers.
The group also showed higher entrepreneurial activity, with 30% owning a business. This is nearly double the rate among neurotypical respondents.
The share of Americans who say salary alone is insufficient rose to 46% in 2026, up from 39% in 2022. The sentiment was strongest among Black consumers (58%), Millennials (52%), and BIPOC consumers overall (50%).
This financial pressure is feeding directly into insurance costs. The average US home insurance premium is projected to reach $3,057 by end of 2026, according to Insurify. This marks a fifth consecutive year of increases, leaving typical homeowners paying roughly $900 more per year than in 2021.
Despite widespread financial anxiety, demand for protection products has not fallen. LIMRA data showed new annualized premium for US life insurance climbed 10% year over year to $4.5 billion in Q1 2026.
A third of consumers reported being very or extremely worried about their finances over the same period. The data suggests financial stress is pushing some Americans toward protection products rather than away from them.
Trust in traditional financial institutions is also shifting. Credit unions led on satisfaction and trust at 77%, but fintech platforms are gaining ground with younger consumers. Fintech’s share of primary financial institution relationships grew from 13% to 17%, while money and payment services surged from 2% to 12%.
Terrance Williams, president and CEO of TruStage, said financial service providers must respond to these realities directly.
“We believe financial service providers must understand that reality with empathy, design solutions that are simple and affordable, and ultimately help people protect what matters most,” he said.
