DI Research
In his research, Dr. Finke explores why private individual disability insurance is uniquely designed to protect income and mitigate the loss of expected future earnings. Northwestern Mutual commissioned Michael Finke, PhD, CFP ® to better understand how significant the risk of disability can be, particularly for those with higher earnings. Using three case studies, this research paper visually shows the significant financial risk even high-net-worth clients may have when faced with a disability, and the impact that disability can have on their overall financial plan and goals. It also quantifies the value of using long-term individual disability insurance (IDI) to mitigate risk exposure within an integrated wealth management plan and who could benefit from disability income insurance (DI) to protect their income and future earnings.
Download the DI Research.
Is $1 million enough to feel affluent in America? Not according to most millionaires. Just 36% of the nation’s wealthiest citizens actually consider themselves “wealthy,” and nearly half (49%) say their financial planning needs improvement. Meanwhile, only about half of American millionaires (53%) expect to leave an inheritance or charitable gift as part of their estate plan.
Odds to Inherit Money from Millionaire Parents: A Coin Flip
Do American millionaires – those with $1 million or more in investable assets – plan to leave behind an inheritance? It’s a coin flip proposition, with just 53% believing they will. Among that group, just 12% identify leaving something behind for the next generation as their single-most important financial goal.
Millionaire Mindset on Money: Clear, Disciplined, Advised, and Optimistic
There are 23.8 million millionaires in the U.S., the most of any country in the world. While most don't see themselves as “wealthy,” American millionaires are much more likely to report higher levels of financial discipline, confidence, and clarity than the average American.
|
|
American Millionaires |
General Public |
|
I have good clarity on exactly how much I can spend now vs. save for later |
88% |
68% |
|
I know how much money I will need to retire comfortably |
77% |
45% |
|
I am a disciplined financial planner |
76% |
49% |
Another differentiator of American millionaires is that they are much more likely to work with a financial advisor (74%) – more than double the amount of the general population (34%). They also trust financial advisors far more than any other source of financial advice. And 93% of millionaires say they have received financial advice, in comparison to 78% of Americans in general.
|
Who do you trust most for financial advice? |
||
|
|
American Millionaires |
General Public |
|
Financial advisors |
60% |
33% |
|
Spouse / partner |
10% |
11% |
|
Business news |
8% |
5% |
|
Family member |
7% |
17% |
|
Online influencers (FinTok) and social media (Reddit, etc.) |
3% |
4% |
|
Friend |
2% |
4% |
|
Trade associations |
2% |
2% |
|
Local news |
1% |
2% |
|
I have not received financial advice from anyone |
7% |
22% |
Interestingly, millionaires who have a financial advisor feel even more secure than millionaires who do not work with one. They also expect to retire two years earlier than those who do not partner with an advisor.
|
|
Millionaires with an Advisor |
Millionaires without an Advisor |
|
I expect to be financially prepared to retire when the time comes |
92% |
76% |
|
I have enough life insurance protection in place to take care of my loved ones if something happened to me |
69% |
60% |
|
I have a plan to address long-term care needs in retirement |
68% |
57% |
|
Average age expected to retire |
63 |
65 |
Millionaires with financial advisors are also more likely to feel strong about their relationships, careers, health, and finances.
|
Feel “strong” or “very strong” about the current state of… |
|
|
|
|
Millionaires with an Advisor |
Millionaires without an Advisor |
|
Relationship with family |
90% |
86% |
|
Friendships |
86% |
75% |
|
Job stability |
88% |
73% |
|
Mental health |
90% |
82% |
|
Physical health |
87% |
82% |
|
Finances |
92% |
86% |
Millionaires’ Top Financial Questions
Millionaires’ top three “burning questions” regarding retirement planning are distinctly different than those top of mind for the average American.
High-net-worth Americans were most concerned about:
- Is it possible I could outlive my savings?
- How will taxes impact me in retirement?
- How can I plan for potential long-term care needs?
Among the general public, the three most pressing questions were:
- How much money will I need to retire comfortably?
- Will Social Security be there when I qualify for it?
- What if inflation rises when I’m retired?
Eight in 10 American Millionaires are “Self-Made”
Nearly eight in 10 (79%) American millionaires say their net worth was "self-made," while just 12% inherited their wealth, and 5% came into it through a windfall event like winning the lottery.
Read the News Release
Read the 2025 Planning and Progress Study – American Millionaires / High-Net-Worth
Read the Local Market Data Report