Employees who use a financial professional (52%) are nearly twice as likely to say they’re happy with their current financial situation as those who don’t (31%), a new survey found.
The Principal Financial Well-Being Index also found that employees who use a financial professional are more likely to feel in control of their personal financial situation (71%) than employees who don’t (54%).
While paying down debt is the top money management priority for about a third (34%) of employees, it’s a bigger priority for those who don’t use a financial professional (39%) than for those who do (20%).
For those who use a financial professional, the priorities shift: 40% are more likely to say that saving for retirement is their top money management priority; among those who don’t use a financial professional, the percentage is 19%. Overall, 24% say that saving for retirement is their top money management priority.
Just over a third of employees (36%) are happy with their current financial situation, the survey found.
Mistakes, We’ve Made A Few…
About 2 out of 10 employees (19%) say spending too much is the biggest financial mistake they have made, while 17% cited taking on too much credit card debt. Not saving enough for retirement tied for fourth, cited by 9%. Not using a financial professional was cited by just 2%.
Two-thirds (66%) of employees who use a financial professional believe they are making good progress toward achieving their long-term financial goals, compared with 47% of employees who don’t use a financial professional.
About two in five (39%) feel stressed about their current financial situation, down from 47% in 4Q 2014. And Baby Boomers (at 31%) are less stressed about their current financial situation compared with Gen Y-ers (47%) and Gen X-ers (41%).
Healthy, Not Wealthy
Employees are more likely to rate themselves as physically healthy (58%) than financially healthy (49%). In terms of financial health, 3 out of 10 employees rated themselves as neither healthy nor unhealthy. Half (49%) rated themselves as financially healthy, while 21% rated their financial state as unhealthy (down from 28% in 4Q 2014). Men (at 55%) are more likely than women (42%) to rate themselves as financially healthy.
The Principal Financial Well-Being Index is based on an online survey of 1,111 employees conducted for the Principal Financial Group by Harris Poll Feb. 9-17, 2015.
