A Northwestern Mutual Planning and Progress Study 2022 found that more than 6 out of 10 Americans (62%) say their financial planning needs improvement, but only a third (35%) seek the help of a financial advisor.
The data also revealed a more short-term trend showing that a significant number of people have recognized the value of get help in the last two years. Nearly 1 in 5 (19%) adults say they did not have a counselor before the Covid pandemic-19, but have now started working with someone or plan to move on.
The study also revealed a difference in savings behaviors among people who work with an advisor versus those who do it alone. Eight out of every 10 (80%) people receiving professional help they say they were able to build up their savings during the pandemic. Among people who do not work with an advisor, only half (62%) were able to save more.
The 2022 Planning and Progress Study also found that people facing financial uncertainty say it is affecting their health, job performance, relationships, and more.
According to the study, financial uncertainty causes the following problems among respondents at least once a month :
– Makes them feel depressed: 36%
– Keeps them awake at night night: 34%
– Affects your relationship with your spouse/partner: 28%
– Causes opportunities and social events to be missed: 28%
– Creates problems with friends or family (other than spouses/partners): 26%
– It makes them physically sick: 24%
– Affects your job performance: 24%
“There are some clear positives to these numbers,” said Tim Gerend, Vice President executive of Northwestern Mutual. “Even though too many Americans still don’t receive financial help, we saw an increase in the number of people seeking professional advice last year and those numbers have held steady at 2022 in rather than returning to pre-pandemic levels“.
There are also some encouraging signs in the data that younger adults value professional advice. Three-quarters of Gen Z and Millennials say their financial planning needs improvement. However, they are the most likely among generations to say that they did not work with an advisor before the pandemic, but have since started or plan to continue.
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