We’re increasingly stressed about reports about stress. The Merrill Edge is the latest, which finds that our financial lives weigh heavily on their minds, affecting both their mental (59%) and physical (56%) health—even more so among today’s younger generations and women of all ages.
Broken out by demographics and cohorts who say it negatively affects their wellbeing, it finds:
Gen Z: mental health–73%, physical health–69%
Millennials: mental health–69%, physical health–66%
Gen X: mental health–58%, physical health–54%
Baby boomers: mental health–40%, physical health–38%
Women: mental health–64%, physical health–60%
Men: mental health–52%, physical health–51%
The study found that 51% are worried about their finances over the next five years, with top concerns including the potential for an inadequate amount of savings, political instability, a looming recession and market volatility.
Debt damage
Another source of worry–of course—is debt:
- Excluding their mortgages, 73% of respondents are carrying some form of debt. The types of debt respondents are dealing with the most include credit cards (43%), auto loans (36%) student loans (20%) and personal loans (15%).
- Forty-six percent of respondents with debt owe more than $20,000, while 18% owe $50,000 or more.
- In order to pay off debt, 68% of respondents are putting certain activities and milestones on the back burner, including going on vacation (43%), buying a car (37%), buying a home (30%) and having children (19%).
“On the bright side, Americans are prioritizing their financial goals, and taking steps towards improving their futures,” Aron Levine, head of Consumer Banking and Investments for Bank of America, said in a statement. “However, many find managing their money today causes them a great deal of stress. The key is to find the right balance of short- and long-term planning, and always to take steps forward without placing a heavy burden on one’s current financial situation or well-being.”
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.
