Those who consider themselves financially disciplined sleep better. It’s not surprising, but with a purported American sleep crisis (and retirement crisis, obesity crisis, economic crisis, etc.), it’s worth a note.
“Gen X are the worst sleepers, and Millennials and Gen Z are tied for the most anxious.”
The latest Northwestern Mutual 2022 Planning & Progress Study finds “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.”
Most U.S. adults aged 18 (54%) and over report feeling somewhat or very anxious about their finances. That number drops to 46% for people who work with financial advisors and 47% for those who self-identify as disciplined planners.
It goes in the other direction for younger adults, with two-thirds (66%) of Millennials and Gen Z saying they feel somewhat or very anxious about their finances.
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,” according to the authors.
“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,” Christian Mitchell, executive vice president, and chief customer officer at Northwestern Mutual, said in a statement. “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.
The study also found a substantial generational difference in how people view the impact of their daily financial decisions. The youngest U.S. adults believe that small daily purchases—even a cup of coffee—will impact their long-term financial security.
“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,” Mitchell concluded. “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.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
