A strong majority of Americans said their own sense of prosperity has improved or held steady over the past six months, even as confidence in the US economy, stock market and politics remains weak, according to Northwestern Mutual’s inaugural Personal Prosperity Index (PPI), developed with Ipsos.
The findings highlight a widening gap between macro pessimism and individual resilience – and point to sustained demand for protection, investment and planning solutions that help people manage financial stress and retirement risk.
The PPI identified six core drivers that best predict whether people feel they are thriving -- having enough money for the basics plus some extra; living a full life with hobbies, family, friends and community; having a lot of love in life; usually feeling happy and content; having tools and practices that help them feel at peace; and enjoying their work or role at home.
When asked what has “a great deal” of impact on their sense of prosperity, respondents put personal finances, relationships and health ahead of wider economic and political conditions. Around a third cited household income and household finances, with similar proportions pointing to relationships with loved ones, emotional health and physical health. Far fewer said their prosperity was strongly influenced by the political climate, the national economy, the cost of necessities, healthcare costs or the investment environment, according to the research.
“Our prosperity is about more than money,” said Northwestern Mutual chairman, president and CEO Tim Gerend. “It’s the health of our mind, body, and personal finances that define our feelings of prosperity the most.”
On a 0–100 scale, the first PPI score for Americans came in at 68, which Northwestern Mutual describes as “good, but not exceptional.” Just over one in five respondents fall into the “excellent” range (85 and above), with additional groups in “very good” and “good.” Roughly one in five reported “poor” or “very poor” prosperity. Overall, nearly three in four said they feel prosperous today.
More people said their prosperity is rising than falling. Twenty‑eight per cent (28%) reported that their prosperity has improved in the past six months, 53% said it is unchanged and 18% said it has declined. Those who feel better off most often pointed to improved relationships, higher household income, better physical health and stronger emotional health.
At the same time, large shares said the cost of basic necessities, healthcare, the investment climate, the national economy and the political climate have all worsened, underscoring the pressure from inflation and volatility.
Nearly one in five Americans said their emotional health or mental well‑being has worsened over the past six months. Among this group, half ranked financial stress as the top factor, ahead of work pressures, health concerns and relationship problems.
Almost a third said their household finances have deteriorated over the same period, while just over a fifth report improvement. Those who feel worse off financially most often blame the rising cost of living, followed by emergency expenses, job loss or income reductions, or using savings to pay down debt.
“Financial anxiety is an epidemic in America – and it casts a shadow over many other aspects of life,” Gerend said. “Financial planning should be considered a core component of self-care.”
Northwestern Mutual linked that near‑term stress to longer‑term retirement worries. Its 2026 Planning & Progress Study found that Americans now believe they will need $1.46 million to retire comfortably, around $200,000 more than in 2025. Fewer than half expect to be financially prepared, and nearly half think they are likely to outlive their savings.
The PPI also revealed a generational prosperity gap.
Average scores rise with age: baby boomers and older adults reported higher prosperity than Gen X, while Millennials and Gen Z scored lowest. Older Americans are more likely to say they usually feel happy and content and that they have enough money for the basics plus some extra. Younger adults, however, are more likely to expect improvements in physical and emotional health and in household finances over the next six months, even as they report more recent deterioration in emotional well‑being.
One of the clearest dividing lines in the PPI is between those who manage money alone and those who use professional support. Americans who work with a financial advisor, hold investments and carry insurance report average prosperity scores in the mid‑70s, several points above the national average of 68. Those with a professional financial plan also score higher than peers without guidance, even when current wealth levels are modest.
“We are excited that the Index is starting to give us a glimpse into what it really takes for people to thrive,” said Jeff Sippel, Northwestern Mutual’s chief strategy officer. “Taking steps like having a financial plan and working with an advisor can make Americans feel more prosperous."
