Americans report a strong sense of personal prosperity, yet new data from two major studies suggests a significant disconnect between financial optimism and actual retirement preparedness. The Northwestern Mutual Personal Prosperity Index, developed with Ipsos, surveyed 2,545 U.S. adults and found that nearly three-quarters describe themselves as prosperous, with an average index score of 68 out of 100. However, this sentiment contrasts sharply with findings from Guardian Life's 15th Annual Workplace Benefits Study, which indicates that only 13% of full-time workers feel on track to save enough for their desired retirement lifestyle.
The Northwestern Mutual index, released in early 2026, shows that 28% of respondents reported an improved sense of prosperity over the past six months, while only 18% saw a decline. Key drivers of this feeling include household income and finances (36% each), relationships (35%), and emotional health (31%). Notably, the investment climate (16%) and national economy (25%) ranked lower, suggesting that personal factors outweigh macroeconomic conditions in shaping well-being. Yet, Guardian's study of 2,000 full-time workers found that half of Americans cite money and finances as their top source of stress, with 50% of those reporting deteriorating emotional health attributing it to financial anxiety.
Tim Gerend, chairman and CEO of Northwestern Mutual, called financial anxiety an epidemic, noting that it overshadows other aspects of life. The stakes are rising as life expectancy increases: Guardian's polling shows the average American expects to live to 91, well above the current U.S. life expectancy of 79. The population aged 65 and older reached 61.2 million between 2023 and 2024, representing 18% of the total population. Meanwhile, the average retirement age has risen by about three years over the past three decades, and most Americans plan to spend roughly two decades in retirement.
Despite these longer horizons, Guardian found that 45% of workers are somewhat or very far off track in saving for retirement. Among those aged 45 and older, 55% regret not starting to save sooner, and 53% regret not saving more. Andrew MacMahon, Guardian's chairman and CEO, highlighted a growing gap between aspirations and preparation. Younger generations face particular strain: only 59% of Gen Z respondents in the Northwestern Mutual survey have enough for basics plus a little extra, compared with 79% of Baby Boomers. More than half of Gen Z and millennials report financial dependence on parents, per Guardian, and 55% of millennials cite money worries as the top driver of declining emotional well-being.
Health metrics also show generational divides. Guardian found that 59% of Baby Boomers are very good at keeping up with routine doctor visits, versus 34% of Gen Z and millennials. Nearly 19% of employees have skipped doctor visits due to cost, and 12% have foregone screenings like mammograms or colonoscopies. Older Americans face different pressures: 78% of Boomers in the Northwestern Mutual survey said costs of basic necessities have worsened over the past six months. While 66% of those 65 and older feel optimistic most of the time, about one in three reports loneliness, linked to mortality risks comparable to smoking 15 cigarettes daily.
Both studies underscore the value of professional financial guidance. The Northwestern Mutual index shows that those working with an advisor, holding investments, and carrying insurance score an average of 76 on the prosperity index, compared with 66 for those without an advisor—a gap that persists even among those with less than $1 million in assets. Among Guardian respondents with high financial wellness, 61% work with an advisor, and 65% are very good at living within their means. For advisors, these findings reinforce the importance of addressing both financial and emotional well-being, as Northwestern Mutual Index: Americans' Personal Prosperity Score Hits 68, Advisors Boost Sentiment and Surveys Reveal Generational Divide in Retirement Planning, Advisors Urged to Broaden Focus highlight.
The retirement savings target itself has grown considerably, according to Northwestern Mutual's 2026 Planning & Progress Study, though specific figures were not detailed in the excerpt. As lifespans lengthen and aspirations rise, the gap between optimism and readiness demands attention from both individuals and the financial services industry. What drives working Americans to seek financial advice and Fidelity Study: 43% of Stock Plan Participants Are First-Time Investors, Reshaping Retirement Saving offer additional context on evolving retirement planning trends.
