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.
