Most Americans agree “my financial health also affects my physical and mental health,” according to a new survey from Empower Retirement and Personal Capital. It found more than half (57%) of Americans connect financial health with their overall happiness. But it means something different for every person and family.
Here’s how responses break down:
- Lifestyle—29% say financial wellness is having a worry-free life.
- Stability—45% say financial wellness is having enough money to pay the bills and have an emergency fund.
- Survival—And 41% say financial wellness means making ends meet.
Key findings on “Financial Wellness” and what it means to everyday investors include:
No “one size fits all” state of financial wellbeing
A strong majority agree that “financial health is more of an ongoing journey” (72%), rather than “achieving a specific milestone” (28%)
Financial wellbeing rooted in ‘freedom, independence’
The vast majority (81%) say, “I will feel financially well when I have the freedom and ability to spend how I want to.”
Financial wellbeing can also feel elusive
A majority (60%) feel confident in their ability to achieve financial health, but only 48% feel financially healthy today. Most think they won’t achieve financial health until nearly age 50 – or when they have over half a million dollars in the bank. But even more than dollar amounts, what’s most associated with financial wellbeing is peace of mind (for instance, having enough to pay bills and meet spending needs).
Most need help with financial wellbeing
Nearly seven in 10 (69%) face at least one roadblock. Lack of income (27%) and constant expenses (23%) are top barriers. What’s more, 76% of Americans say, “receiving helpful financial advice makes me more confident in my ability to achieve financial wellness.” And 69% believe “financial services companies need to re-define financial health to be more relatable and achievable.”
“Now it becomes even more important to help Americans with a personalized, holistic view of their finances and savings goals,” said Edmund F. Murphy III, President and CEO of Empower Retirement. “In the wake of the pandemic, Americans have changed their relationship with money, and as a result how they define financial wellness. We are listening and are here to support American families as they navigate this new normal.”