Money Stress Is Linked to Poor Financial Wellness, Advisors Can Help

Wola Odeniran  Fri, July 22, 2022

New research from T. Rowe Price shows that your level of financial stress can connect with your financial wellness. In fact, retirement plan participants who report stress related to debt are saving less for retirement than those who are not stressed. Let's take a look at how money stress can be a sign of poor financial wellness.

A financial advisor could help you create a financial plan to get on a stress-free path to managing your money.

Retirement Plan Participants Are Stressed About Money

T. Rowe Price says that your path to a successful retirement starts with financial wellness. This includes paying your bills on time, being prepared for emergencies, and making sure you have access to information and tools that can track your financial decisions and hold you accountable.

But research from the global investment firm shows that retirement plan participants are stressed about debt. And this is causing them to save less than those who are not stressed. The research shows that stress stems from several financial factors, including debt, budgeting and health care expenses.

According to the study, 33% of respondents are struggling to stick to their monthly budgets. Roughly one-third of those with student loan debt are having issues repaying it. And 20% of respondents are similarly struggling to pay off credit card debt or home equities.

Research also shows that this financial stress is taking a toll on young folks, women and racial minorities.

Among survey participants, 73% of workers age 30 and younger reported moderate to high levels of stress related to budgeting, while only 40% of older workers age 50 and older reported the same stress.

Research also shows that women are 26% more likely than men to experience higher levels of financial stress, specifically as it relates to debt, budgeting, nonretirement savings and health care expenses.

When it comes to race, the study found that Black and Latino workers are 34% and 40%, respectively, more likely to experience higher levels of debt-related stress than white workers.

Overall, 25% of respondents believe they will have to lower their standard of living in retirement.

How High Financial Stress Predicts Financial Wellness

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https://news.yahoo.com/money-stress-linked-poor-financial-153548429.html