The Physical Toll of Financial Stress

401k, stress, retirement, debt
She’s feeling boxed in.

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.”

John Sullivan
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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.

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