Financial Planning, Retirement

Many Americans Suffer From Chronic Financial Stress

8/1/19 12:00 PM

/iStock-462756183.jpgSeventy-eight percent of Americans admitted to regularly losing sleep at night in a new Bankrate survey. That is an increase of 9 percent from the 2018 poll and again the key issue keeping people awake is money. Moreover, 56 percent of respondents said that they toss and turn over at least one financial challenge, with the top two worries being “everyday expenses” and “saving enough for retirement.” Such concerns were expressed by Americans of all ages and from all income groups, but separate studies suggest that young adults are especially stressed by money-related problems. For example, an earlier report from Bank of America Merrill Lynch found that even though a large majority (84 percent) of surveyed Millennials said that they are at least “somewhat confident” in their ability to manage their personal finances, 41 percent still reported that they are “chronically stressed” about money.

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Further, when asked how they feel about their current financial situation, more Gen Y respondents said that they are “anxious” or “overwhelmed” than those who reported feeling “prepared,” “happy,” or “secure.” The most frequently cited sources of stress included insufficient savings, overspending, debt, and being ill-prepared for retirement. That anxiety also appears to have permeated into other areas of respondents’ lives, including emotional well-being, personal relationships, and physical health. Roughly one in five surveyed Millennials even said that financial stress has had an adverse effect on their workplace performance. Similarly, a poll conducted by MassMutual found that 37 percent of adults consider it is at least “somewhat difficult” to regularly manage their personal finances, and around the same amount (40 percent) reported that they are often distracted by money at work. An inability to focus can hurt job performance, and younger Americans were found to be a lot more distracted by financial issues than older generations. The researchers also discovered that workers who are less distracted by their personal finances tend to be more satisfied with their employer-provided benefits, likely another reason why businesses should explore implementing a financial wellness program.

  


 

Sources: Bankrate, BofAML, MassMutual

Post author: Charles Couch

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