Just a third of Americans are doing well as financial issues persist

A new study by The Guardian Life Insurance Company of America has revealed that just roughly one-third of Americans report high well-being, with retirement planning and personal finances being primary stressors.

The annual Mind, Body, and Wallet report surveyed over 4,000 full-time employees and benefits decision-makers in the US, sheds fresh light on the persistent issues and interconnections that bind Americans' mental, physical, and financial health.

According to the 2024 report, only 36 percent and 37 percent of Americans rate their mental and physical health as "good" or "excellent," respectively. Financial health is even worse, with just 32 percent of respondents expressing satisfaction.

One significant concern highlighted by the report is the uncertainty surrounding retirement, with nearly half of respondents stressed about not having enough money to sustain their retirement or lacking a guaranteed income source during retirement.

Adding to the anxiety, only half of Americans are confident in their understanding of how much they will need for retirement, and a mere 36 percent believe they are proficient in managing their finances.

The study also emphasized the interconnectedness of financial health with other dimensions of wellness. Notably, 73 percent of individuals with high financial health reported positive emotional health, whereas 82 percent of those with poor financial health also experienced poor emotional health.

"The study re-affirmed the outsized impact financial health has on overall well-being, with particular influence on mental and physical wellness," Andrew McMahon, Guardian's CEO and president, said in a statement.

Work-life balance appeared to be another critical issue. With only 34 percent of Americans rating their experience as good, there’s hardly any wonder why the latest data reflects a 33 percent rise in reported burnout.

The report also saw disparities across demographic groups. For the first time in several years, Gen X reported worse financial well-being than Gen Z (27 percent for Gen Xers vs 31 percent among Gen Z), likely due to inflation and economic uncertainties as they near retirement.

Single parents also reported significantly lower well-being compared to partnered parents, with just 27 percent rating their physical health as good versus 43 percent of partnered parents.

Additionally, the mental health of new parents has become a growing concern, with a 215 percent surge in short-term disability claims due to post-partum depression between 2020 and 2023. Members of the sandwich generation also reported low well-being, with 43 percent and 41 percent citing poor mental and financial health, respectively.

If there’s any silver lining to be gleaned from the report, it’s probably the fact that the latest data marks a four-percentage point improvement from 2023, though that doesn’t erase the reality of low overall well-being among Americans.

"While we were encouraged to see a small year-over-year increase, sustainable improvement to well-being will require a continued focus on education, empowerment, and solutions that meet people where they are," McMahon said.