LIMRA Financial Wellness Index: 2026 Update

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Authors

Deb Dupont
Assistant Vice President Workplace Benefits Research, Institutional Retirement
LIMRA and LOMA

Megan Nadzan, Ph.D.
Senior Research Analyst, Workplace Benefits Research
LIMRA and LOMA

July 2026

Since 2022, the LIMRA Financial Wellness Index has helped financial services companies and professionals better understand and meet the needs of various consumer and employee populations.

It’s worth noting that the data collection effort for our third wave of the index closed in early 2025, before many of the economic factors now influencing the wellness equation for many American families had fully emerged.

Understanding Financial Wellness Trends

Based on a definition that includes being able to meet day-to-day demands, measures of confidence and coverage/preparedness, and the ability to plan for the future, the LIMRA Financial Wellness Index helps us compare and trend financial stressors and wellness factors. It’s a starting point for both individual planning conversations and business benefits strategies.

The Financial Wellness Index, introduced in 2022, examines multiple aspects of a person’s financial life (e.g., savings, debt, confidence). The index synthesizes these elements into a single score that reflects overall financial wellness using a scale of 0 (least well) to 10 (most well) (Figure 1).

In that first year, adults ages 18–75 scored above the mid-point, at an average of 5.57, with the highest financial wellness scores for older, higher-income, retired and non-LGBTQIA+ consumers. The lowest financial wellness scores belonged to LGBTQIA+ individuals, women, Millennials and Generation Z, and lower-income workers (those earning $74,000–$99,000). These relative comparisons hold up over the next two iterations of the index, although gains and losses vary by demographic.

Figure 1. LIMRA Financial Wellness Index 2022–2026

The 2024 measure showed a drop of 11% in financial wellness scores — from 5.08 to 4.95 — for consumers ages 18–75 and a drop of 12% for workers in the same age range.

The latest wave, in 2026, showed a modest increase in overall financial wellness, although it did not rise to our introductory levels. The consumer financial wellness measure increased by 3% from 2024–2026, and for workers, the increase was 8%. Overall, during the six years we’ve measured financial wellness, it has declined 9% (and 5% for workers).

Drivers of Financial Stress

Unsurprisingly, inflation and the rising cost of everyday expenses are the primary drivers of increased financial stress. More than half of consumers say covering day-to-day expenses is a frequent — if not constant — concern, with food, housing, and utilities cited as the leading sources of strain. Credit card debt remains a significant pressure point for 37% of those experiencing financial stress (Figure 2).

Figure 2. Worrying about Day-to-Day Expenses

A follow-up question reveals that 80% of households have faced medical bills of $500 or more, with 41% turning to credit cards to pay them. Far fewer, just 19%, report a more advisable approach: using a Health Savings Account (HSA), although slightly more than half of households do have access to such an account. Nearly half of households are concerned about their ability to pay their medical expenses over time.

At the same time, financial optimism, while not strong, has remained relatively stable over the past two years. In 2025, 35% expected the coming year to bring less financial stress, while a quarter (26%) expected a more stressful year ahead. LGBTQIA+ individuals and the highest income consumers — those making $250,000 or more each year — in particular, are increasingly pessimistic about their near-term financial stress. Rising cost of living is the clear leading driver of expected financial stress, cited by 39% of consumers — well ahead of the next most common concern, increased debt (10%).

The Broader Impact

The decline in overall financial wellness — particularly across certain demographic groups — and the range of factors driving financial stress underscore the need for the financial services industry to step up. Embedding more holistic support across benefits and financial planning will be critical to better serving clients.

On a holistic level, financial, emotional and physical wellness — and stress — are interconnected. Financial stress often begins as an emotional response, affecting mental health and day-to-day well-being, and can also have lasting physical impacts, contributing to stress-related conditions such as heart disease and high blood pressure. Collectively, these factors can have a profound effect on employees’ ability and well-being, ultimately affecting the workplace itself.

Conclusion

The rising cost of living stands out as the dominant driver of both current and anticipated financial stress, far outpacing other factors. This exemplifies a clear opportunity for guidance on the part of the financial services industry. As an industry, we can’t lower prices, but we can play a critical role in helping individuals save, budget, manage and plan more effectively.

Comprehensive financial planning discussions and solutions can be informed by analyzing the specific wellness dimensions and factors at play within different demographic populations. Similarly, understanding the wellness situations of various populations can inform workplace wellness strategies for benefits consultants and providers. There is a natural fit between the workplace and wellness solutions, especially considering the critical importance of salary and benefits to individuals’ and families’ financial wellness and security.

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