Americans are increasingly distinguishing their personal financial well-being from the broader economic and political landscape, according to the inaugural Personal Prosperity Index from Northwestern Mutual, developed in partnership with Ipsos. The index, which surveyed a representative sample of U.S. adults, assigned an average prosperity score of 68 out of 100. Notably, 73% of respondents described themselves as currently prosperous, and more than 80% reported that their sense of prosperity had either improved or remained stable over the prior six months.
The findings underscore a divergence between individual sentiment and macroeconomic anxiety. While concerns about the national economy, investment markets, and the political climate persist, respondents indicated that personal factors—such as mental health, physical health, relationships, and household finances—weigh more heavily on their perceived prosperity. Specifically, 36% of participants cited household income and household finances as the strongest contributors, followed by relationships with loved ones (35%), emotional health (31%), and physical health (30%). In contrast, only 27% pointed to the political climate, 25% to the national economy, 24% to the cost of necessities, 22% to healthcare costs, and 16% to investment markets.
“Our prosperity is about more than money,” said Tim Gerend, chairman, president, and CEO of Northwestern Mutual. “It’s the health of our mind, body, and personal finances that define our feelings of prosperity the most. The good news is that people have greater autonomy over these parts of their lives.” Gerend emphasized that in an environment where many external factors feel uncontrollable, personal prosperity remains something Americans can actively influence.
The survey also tracked changes in prosperity over time. Over the six months prior to the survey, 28% of respondents reported an improvement in their prosperity, while 18% said it had declined. The remaining 53% saw no change. Among those who felt better off, 44% credited stronger social connections, 39% pointed to healthier lifestyles and self-care—including exercise, sleep, and nutrition—and 37% cited a renewed sense of purpose or achievement.
Financial planning emerged as a significant differentiator in prosperity scores. Respondents who worked with a financial advisor averaged 74 on the index, compared with 66 for those without an advisor. The gap widened further among individuals who combined an advisor relationship with investments, insurance coverage, and a formal financial plan, who scored 76. This pattern was especially pronounced among lower-scoring respondents, many of whom faced simultaneous financial, income, and health challenges. Roughly one in five in that group reported having no investable assets, and the same proportion said they lacked sufficient funds to cover basic living expenses.
“We are excited that the Index is starting to give us a glimpse into what it really takes for people to thrive,” said Jeff Sippel, Northwestern Mutual’s chief strategy officer. “While it is early, the Personal Prosperity Index shows that taking steps like having a financial plan and working with an advisor can make Americans feel more prosperous.”
For advisors, the data reinforces the value of holistic planning that addresses clients’ non-financial goals. As research on what drives working Americans to seek financial advice shows, emotional and relational factors often underpin the decision to engage a professional. The Northwestern Mutual findings suggest that advisors who integrate lifestyle and wellness considerations into their practice may strengthen client relationships and improve outcomes.
The index also highlights an opportunity for advisors to reach underserved segments. With nearly a quarter of low-prosperity respondents lacking basic financial resources, targeted guidance on budgeting, emergency savings, and insurance could help close the gap. As the industry continues to evolve, tools like AI-driven research platforms may further enable advisors to deliver personalized advice at scale.
While the Personal Prosperity Index is in its first year, it provides a benchmark for tracking how Americans define and experience prosperity beyond traditional wealth metrics. For financial professionals, the message is clear: prosperity is multidimensional, and advisors who address the full spectrum of client needs are likely to see both higher satisfaction and stronger retention.
