Survey shows high level of financial stress among workers

roswell Daily recorD

Most U.S. workers spend 15 to 25 minutes of their workday thinking about their finances, according to a September 2022 survey commissioned by the National Association of Personal Financial Advisors (NAPFA), with 63% indicating that they are somewhat or extremely stressed about their financial situations.

The number of respondents feeling somewhat or slightly stressed was greater than those feeling only slightly stressed or no stress regardless of categories, including gender or gender identification, type of career or work status (such as “white collar” or service industry) or generational group, with Generation Z, 18 to 24-yearolds) to Baby Boomers (57 to 65-year-olds) participating as respondents.

The online survey of 2,005 working adults in the United States by Atomik Research occurred Sept. 16-28, with the research agency indicating that responses were judged to have error margins of minus or positive two points.

The groups with the highest number of respondents feeling “no stress at all” about their finances, were Baby Boom - ers (17%), white-collar employees (15%) and men (15%). Groups with the highest number of respondents feeling extremely stressed were millennials, or 25 to 40-year-olds, (35%); service industry employees (30%); and women (28%).

Overall about 63% of survey participants felt that financial stress caused them to have lower work productivity. For Generation Z and Millennials, the rates were especially high, with 71% and 70%, respectively, saying they agreed or strongly agreed with that statement.

The association conducted the survey to highlight some of the ways people can improve their financial wellness, which the group thinks can be done best by seeking the help of a professional financial planner.

“We hope that these results provide insight into the importance of expanding one’s financial planning knowledge, taking steps to improve financial wellness and understanding the significance of the quality of financial benefits that employers offer, which can all be addressed through the expert guidance of a financial planner,” the association stated.

One insight into why so many might delay retirement planning, for example, is that 69% of respondents indicated that they somewhat or strongly agree that they need to pay off all debt before they start saving for retirement. Strongly agreeing with that idea were 35.5% of all respondents. And 52% strongly or somewhat agreed with the statement that everything they know about retirement planning comes from employer-sponsored financial benefit programs.

That U.S. workers understand that lack of financial and retirement planning is a significant issue for many was seen in the survey responses to a question asking how many personally knew of people delaying retirement because they don’t have enough savings. Overall about 64% of respondents did, with most respondents in all categories saying that was the case.

Stephen Fletcher of Blue Sky Wealth Advisors LLC said in a recorded interview posted on the NAPFA website that the current need for a comfortable retirement is now “several million dollars,” no longer the $1 million to $2 million that many have for decades considered adequate.

He said that millennials and others need to start now to use their earnings for retirement savings or investments and that taking the first step to seek advice or make a plan is the best option.

Other findings of the recent NAFPA survey include that 66 percent would like to see employers offer more financial wellness programs, including personal financial advising, while 62.5% said they would consider an employer that offers student-debt solutions a more attractive job option.

NAFPA recommends using a fee-only financial advisor for planning, but other options do exist, including some planning and financial apps. For those wanting professional advice but feeling as if they cannot afford it, the nonprofit group Advisers Give Back (advisersgiveback.org) offers free financial counseling from professionals, although donations are encouraged. Other programs for pro-bono professional assistance exist for disabled veterans and their families (Building Homes for Heroes) and women (savvyladies.org), as well as other categories of workers.