Page 23 - A Guide To Financial Health v2

Chapter 03: Financial Stress

If Americans are struggling to save enough money to handle short term

problems, they're unable to devote any resources—financial or cognitive—

to planning for the long term. And this leads to debilitating stress.

“If people can’t cover a very small, unexpected expense, how can we expect

them to save for retirement?”

– ANGIE CHEN, CENTER FOR RETIREMENT RESEARCH AT BOSTON COLLEGE

Northwestern Mutual’'s 2018 Planning & Progress study reports that 78% of

Americans feel stress over retiring comfortably, while 21% have no

retirement savings at all. The same study found that money is the top cause

of stress—a finding that’s echoed by the American Psychological

Association, which reports that money causes more stress than work,

health, or relationships. Similarly, PwC’'s Employee Financial Wellness Survey

found that 67% of employees feel stressed about finances. Financial stress

can affect every part of a person's life, causing a widespread negative

impact on society.