Northwestern Mutual's 2022 Planning &
Progress Study finds more than half (54%) of U.S. adults are
anxious about their finances; for Gen Z and Millennials it's
two-thirds (66%)
MILWAUKEE, July 7, 2022
/PRNewswire/ -- The latest set of findings from the Northwestern
Mutual 2022 Planning & Progress Study finds that people who
work with a financial advisor and those who self-identify as
disciplined financial planners not only report lower levels of
financial anxiety in their lives, but higher levels of happiness
and better sleep, too.
The research, conducted with Harris Poll and based on a sample
of nearly 2,500 people, finds the majority (54%) of U.S. adults
aged 18 and over report feeling somewhat or very anxious about
their finances. That number drops to 46% for people who work with a
financial advisor and 47% for those who self-identify as
disciplined planners. It goes in the other direction for younger
adults, with two-thirds (66%) of both Millennials and Gen Z saying
they feel somewhat or very anxious about their finances.
|
Somewhat / very
anxious about finances
|
All US adults
18+
|
54 %
|
Gen Z
|
66 %
|
Millennials
|
66 %
|
People who work with a
financial advisor
|
46 %
|
People who do not work
with an advisor
|
58 %
|
Disciplined
planners
|
47 %
|
Informal planners /
non-planners
|
64 %
|
The study uncovered an interesting relationship between
financial planning and overall wellness, with people who have an
advisor or identify as disciplined planners reporting being happier
and sleeping better.
|
Somewhat
/
very
happy
|
Somewhat
/
very
unhappy
|
Disciplined
planners
|
84 %
|
16 %
|
Informal /
non-planners
|
68 %
|
32 %
|
People who work with a
financial advisor
|
87 %
|
13 %
|
People who do not work
with a financial advisor
|
72 %
|
28 %
|
|
Sleep well
/
very
well
|
Sleep poorly /
very poorly
|
Disciplined
planners
|
76 %
|
24 %
|
Informal /
non-planners
|
62 %
|
38 %
|
People who work with a
financial advisor
|
81 %
|
19 %
|
People who do not work
with a financial advisor
|
65 %
|
35 %
|
"It's interesting to look beyond the traditional financial
wellness categories and explore topics such as how happy people
feel, and how well they're sleeping at night," said Christian Mitchell, executive vice president
& chief customer officer at Northwestern Mutual. "What emerges
is a pretty distinct link between financial wellness and overall
wellness."
A generational breakdown across wellness categories reveals that
Gen X are the worst sleepers, and Millennials and Gen Z are tied
for the most anxious.
|
Somewhat
/
very
happy
|
Sleep well
/
very
well
|
Not very / not at
all
anxious about finances
|
Boomers+
|
84 %
|
76 %
|
64 %
|
Gen X
|
72 %
|
62 %
|
42 %
|
Millennials
|
75 %
|
72 %
|
34 %
|
Gen Z
|
72 %
|
71 %
|
34 %
|
The study also found a strong generational difference exists
when it comes to how people view the impact of their daily
financial decisions. The youngest group of U.S. adults believe that
small daily purchases – even a cup of coffee – will have an impact
on their long-term financial security.
|
All U.S.
adults
|
Gen Z
|
Millennials
|
Gen X
|
Boomers
+
|
Small purchases like a
daily cup of coffee will impact my long-term financial
security
|
44 %
|
53 %
|
52 %
|
46 %
|
32 %
|
Small purchases like a
daily cup of coffee will not impact my long-term financial
security
|
56 %
|
47 %
|
48 %
|
54 %
|
68 %
|
"There's not a universally correct answer here, but it's
noteworthy particularly for advisors that there's been a shift in
point-of-view from one generation to the next," says Mitchell.
"Regardless of age, the goal is to have clarity on what you will
need in order to enjoy the things that make you happy in life –
from the simple pleasures such as a daily cup of coffee to the
larger milestones like a comfortable retirement, and everything in
between."In forthcoming data sets, the 2022 Planning & Progress
Study will explore wide-ranging issues facing Americans spanning
savings and debt, work and retirement, planning, priorities and
more.
About The 2022 Northwestern
Mutual Planning & Progress Study
The 2022 Planning & Progress Study was conducted
by The Harris Poll on behalf of Northwestern Mutual and included
2,381 American adults aged 18 or older who participated in an
online survey between February 8
– 17, 2022. Results were weighted to Census targets for
education, age, gender, race / ethnicity, region and household
income. Propensity score weighting was also used to adjust for
respondents' propensity to be online. No estimates of
theoretical sampling error can be calculated; a full methodology is
available.
About Northwestern
Mutual
Northwestern Mutual has been helping people and businesses
achieve financial security for more than 165 years. Through a
holistic planning approach, Northwestern Mutual combines the
expertise of its financial professionals with a personalized
digital experience and industry-leading products to help its
clients plan for what's most important. With more than $561 billion in combined company and client
assets, $34 billion in revenues, and
$2.1 trillion worth of life insurance
protection in force, Northwestern Mutual delivers financial
security to nearly five million people with life, disability income
and long-term care insurance, annuities, and brokerage and advisory
services. Northwestern Mutual ranked 97 on the 2022 FORTUNE 500 and
was recognized by FORTUNE® as one of the "World's Most Admired"
life insurance companies in 2022.
Northwestern Mutual is the marketing name for The Northwestern
Mutual Life Insurance Company (NM), Milwaukee, WI (life and disability insurance,
annuities, and life insurance with long-term care benefits) and its
subsidiaries. Subsidiaries include Northwestern Mutual Investment
Services, LLC (NMIS) (investment brokerage services),
broker-dealer, registered investment adviser, member FINRA and
SIPC; the Northwestern Mutual Wealth Management Company® (NMWMC)
(investment advisory and services), federal savings bank; and
Northwestern Long Term Care Insurance Company (NLTC) (long-term
care insurance). Not all Northwestern Mutual representatives are
advisors. Only those representatives with "Advisor" in their title
or who otherwise disclose their status as an advisor of NMWMC are
credentialed as NMWMC representatives to provide investment
advisory services.
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SOURCE Northwestern Mutual