Americans Blame Their Stress On Finances, Survey Says

We may not need a poll to tell us that Americans are stressed in this pandemic era. Nonetheless, a new report by John Hancock not only concludes we are indeed stressed, it explores the likely impacts of that stress on Americans’ mental health and overall well-being.

The report, titled “Retirement Stress, Finances and Well-Being,” confirms how many of us our feeling when it comes to financial, emotional and physical well-being. A whopping three quarters of Americans admitted they are moderately or extremely stressed and almost as many blamed the state of their finances for that stress. Half of Americans have missed regular health checkups – including dental, vision and cancer screenings - and nearly half said the pandemic has had a negative or very negative impact on their mental health.

At the same time, however, three-quarters of Americans said they believe their current physical health is in good or very good shape. But because of pandemic-related financial crunches, 53% said fitness activities would be among the first to cut from their budget, and 28% said they would delay health care spending.

“The paradox is that, despite the ongoing constraints, people are more aware of their own mortality today,” the report said. “They are taking a hard look at the role of preventative health in their lives to protect themselves and be there for their families.”

That wasn’t the only counterintuitive finding, according to the report.

“Every year, we see that people are stressed and that their finances are a significant source of that stress,” the report said. "But after almost two years of the pandemic, we found a surprising contradiction: Workers are reporting that they’ve taken some positive short-term steps and are more optimistic about their financial situation than they were even before 2020. At the same time, however, they’re struggling to make long-term decisions and feeling more stress than before the pandemic.”

From an employer perspective, the report raises several red flags about productivity and performance. It found that 40% of workers say they would be more productive if they didn’t have to worry about finances while at work. More than 25% admitted to spending three to four hours or more per month on their personal finances while at work.

Cost Grows

And 26% said stresses have increased since last year. At the same time, 46% said they expect things will get no better at work this year. The report estimated that the cost of financial stress per employee per year in lost productivity and absenteeism has increased to $2,412 from $1,918 in 2019.

The top worries of Americans, according to the survey were:

 

1. Concern about economic conditions.
2. Having enough saved for retirement.
3. Credit card debt.
4. Emergency savings.
5. Overall current financial situation.

 

As in other surveys, the John Hancock poll found a great desire for help in planning and managing finances. Less than one-third of respondents said they sought help from professional financial planners but more than 80% said they would like to be more confident in their financial decision-making.

The online survey was conducted last fall, John Hancock said, with more than 1,100 respondents.

Doug Bailey is a journalist and freelance writer who lives outside of Boston. He can be reached at [email protected].

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