Majority of Younger Americans Prioritize Wealth Over Insurance Protection
A recent Northwestern Mutual 2025 Planning & Progress Study highlights that 60% to 61% of younger Americans, specifically Gen Z and millennials, prioritize wealth accumulation over protective financial measures such as life and disability insurance. The trend is driven by enthusiasm for early investing, influenced by digital platforms and financial information accessibility, as well as societal values on financial success.
Financial advisor Jason Thrap notes that while wealth building is positive, it often overshadows the importance of risk management and asset protection. Sudden life events like injuries or death can cause significant financial hardship if adequate insurance coverage is lacking. There is a notable gap in attention to protection products, partly due to a shortage of financial advisors focusing on younger clients.
Additional factors include younger consumers' perception of invincibility, lack of awareness about insurance benefits, competing financial pressures such as student loans, and preferences for immediate financial gratification. These elements contribute to the delay or neglect of insurance acquisition among this demographic.
Financial professionals are encouraged to adopt a relational approach by taking time to understand clients' goals and risk exposures, promoting comprehensive financial plans that balance investment growth with insurance protection. Northwestern Mutual is targeting recruitment of 5,000 new financial professionals and college representatives in 2025 to address the advisory gap and better assist younger clients.
The study underscores the need for enhanced education and personalized planning to improve insurance adoption rates among younger Americans, potentially mitigating future financial vulnerabilities. This approach aligns with industry trends emphasizing integrated wealth management and risk protection strategies.
The 2025 Planning & Progress Study was conducted online by The Harris Poll for Northwestern Mutual, surveying 4,626 U.S. adults aged 18 and older between January 2 and 19, 2025. The findings present actionable insights for insurance professionals aiming to engage younger markets effectively.