Marital Status & Financial Wellness Attitude
A recent PLANSPONSOR article, Client Marital Status and Career Outlook Central to Risk Tolerance, by John Manganaro, highlights research from the 2016 Northwestern Mutual Planning and Progress study, which suggests a client’s thoughts about marital status and career ambition are among the strongest determinants of risk tolerance and general financial attitudes.
-“Single households make up 45% of the U.S. population and are growing according to the Census Bureau.”
-“Overall, singles are generally less satisfied with their financial circumstances than married Americans.”
-Generally, financial anxiety runs higher among singles than among married people.
-“2 in 3 singles are not confident their plan can withstand market cycles.”
-“1/2 of all singles have not spoken to anyone about retirement.”
-“Single men appear to be more focused on professional success, opting for ‘satisfying career’ as an attribute of the American Dream more frequently than single women and married people… moreover, single men are twice as likely as single women to choose ‘freedom to pursue my dreams’ as the top benefit of financial security.”
-“6 in 10 single women chose ‘peace of mind from not worrying about day-to-day expenses’ as the top benefit of financial security.”
-“3/4 of single women (74%) are happy with their social lives compared to 2/3 of single men (66%) and they also indicate a higher level of satisfaction with their family life and physical well-being.”
With a growing population of singles in the U.S. who appear to be largely dissatisfied with their financial outlook (according the the Northwestern Mutual research presented in this article), the financial services industry will likely have a considerable opportunity to aid singles in developing a plan for retirement.