As financial insecurity hits record high, employees need help protecting their assets

Americans’ view of the U.S. economy is worsening, coupled with feelings of financial insecurity hitting a record high. These are among the findings from Northwestern Mutual’s newly released 2024 Planning & Progress Study, conducted by The Harris Poll on behalf of Northwestern Mutual.

One-third (33%) of Americans do not feel financially secure, and just over half (54%) of adults expect the U.S. to enter a recession in the near future.

Inflation is a clear determinant of this insecurity. More than half (54%) of U.S. adults expect inflation to increase this year, and only 9% say their household income is outpacing it. Far and away, inflation is considered the greatest obstacle to financial security.

“Americans have had to endure one financial disruption after another over the last several years, and it’s hard to feel positive when you don’t know what’s around the corner,” said Christian Mitchell, chief customer officer at Northwestern Mutual. “The pace and scale of the financial uncertainty around them is leading to greater feelings of anxiety, analysis paralysis and an overriding sense that they’re always reacting instead of controlling their own destiny.”

Besides inflation, Americans are worried about the impact that decisions (or indecision) by the government could have on their financial well-being. When asked to rank the concerns that could impact their finances the most in 2024, inflation was the highest, followed by government dysfunction.

• Inflation – 57%
• Government dysfunction – 34%
• S. presidential election – 33%
• Potential recession – 24%
• Interest rates – 24%
• Market volatility – 15%
• Geopolitical conflicts – 14%

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Younger generations are adding a side hustle or second job at a heightened rate (46% for Gen Z and 43% for millennials). About one in six millennials (16%) said they are interested in getting a financial advisor, while 15% said they are considering buying life insurance or increasing life insurance coverage.

“People are recognizing that building wealth isn’t enough – they want to protect what they’ve already created, too,” Mitchell said. “This year, more Americans say they want to play better defense so the unexpected surprises that arise aren’t so disruptive to their financial lives.”