Personal Prosperity Is on the Rise, Despite Tough Times 

You might think thriving in tough times would be a luxury reserved for the very wealthy. But according to Northwestern Mutual’s latest Personal Prosperity Index (PPI) data, everyday Americans’ sense of prosperity has actually increased over the six months since we last surveyed them. Despite real concerns about high prices and job security, Americans appear to have more personal control over their prosperity than the doom-and-gloom headlines might suggest. And that insight—that prosperity is something people can shape through their own choices—may be the most encouraging finding in the entire report.

However, the gains are unevenly distributed: Americans who work with a financial advisor continue to report higher prosperity—an advantage that holds among those with less than $1 million in investible assets—a pattern consistent with the link between financial planning and prosperity.

The prosperity paradox: feelings of personal prosperity vs. perceptions of the national economy

We call it the prosperity paradox: Americans’ sense of personal prosperity is rising even as their view of the country darkens. Our overall PPI score rose to 71 out of 100, up three points from 68 at mid-year, placing the average American in the “moderate to good” prosperity range (55–74).

Nearly eight in 10 (77%) Americans describe themselves as feeling prosperous today, and one-third (34%) say they feel more prosperous than six months ago. In other words, while the national mood has soured, the personal mood has quietly improved—and that gap between the two tells a story about where Americans actually locate their sense of well-being.

It’s not in the headlines. It’s in their homes, their relationships, and the daily choices that shape their lives.

At the same time, more than half of Americans (61%) believe the national economy has worsened. And about the same number (59%) say the political climate has worsened, as has the cost of necessities (58%).

So, Americans aren’t naive—they see the pressures clearly. What’s striking is that they’re not letting those pressures define their personal sense of how things are going. The data suggests a kind of quiet resolve: people are tracking the bad news without absorbing it as their own story.

Meanwhile, job anxiety weighs on many Americans—three in 10 (30%) working adults say they are concerned about losing their job in the next six months. Yet even amid that anxiety, younger Americans are the most likely to say they’re gaining ground, a tension we’ll return to. Their optimism isn’t blind; it’s rooted in something other than the economic conditions around them.

It’s not about the economy. It’s about personal choices.

What explains the disconnect between bad news on the public stage and good feelings at home? The PPI is built mostly on personal dimensions – relationships, health, a sense of purpose – not on markets or politics. And the gains we’ve seen this year came from exactly those places; people feeling their lives are fuller, more peaceful, more connected. What that tells us is that prosperity isn’t just something that happens to people when the economy is strong – it's something they can actively cultivate through their choices, relationships, and habits.

Northwestern Mutual’s Personal Prosperity Index

Northwestern Mutual’s Personal Prosperity Index (PPI) is a proprietary, data-driven metric designed to capture how Americans experience prosperity. The Year-End 2026 Northwestern Mutual Personal Prosperity Index was conducted by The Harris Poll on behalf of Northwestern Mutual among 2,000 U.S. adults aged 18 or older. The survey was conducted online from August 25 to September 3, 2026, and data were weighted by gender, age, and race / ethnicity to be representative of the U.S. general population.

The gains in prosperity are led by emotional and relationship factors—not financial ones. Among those who became more prosperous, feelings and perceptions of life (45%) mattered nearly twice as much as finances (24%). What this tells us is that prosperity, as Americans experience it, is fundamentally holistic. It’s not a balance sheet—it’s a sense that life is working, that there’s enough love and meaning to go around, and that the future is something to lean into rather than fear. When people say they feel prosperous, they’re really telling us they feel connected, grounded, and quietly optimistic.

So it isn’t surprising that two-thirds of Americans (66%) say activities that help them feel connected to others are worth the financial cost, even when they strain their budget—suggesting many Americans feel better and more prosperous when they get out there and mingle. Americans aren’t just telling us connection matters; they’re putting their money where their values are, choosing to invest in relationships even when money is tight. That’s a rational decision, not a frivolous one, because the return on that investment shows up in their sense of prosperity.

Boomers are gaining, Zoomers not so much

Prosperity continues to increase with age: Boomers and their elders score a 76 PPI on average, while Gen Z trails at 67. From a purely financial standpoint, that gap is likely explained by savings and investments growing over time. American Boomers have accumulated more wealth than previous generations, although the vast majority of those assets are concentrated among the wealthiest families.

But wealth alone doesn’t capture the full story. Decades of lived experience—weathering recessions, building relationships, developing the habits and perspectives that come with time—likely contribute to a steadier sense of well-being that younger adults are still working toward.

What’s more, the generational prosperity gap is widening. Boomers now score nine points higher than Gen Z, compared to the six-point difference seen at mid-year (72 vs. 66).

But there is good news for young adults just getting started (and not only that they can expect their investments to grow over time). Despite having the lowest PPI score among any generation, Gen Z is the most likely to say they feel more prosperous than six months ago. This is the paradox within the paradox: Gen Z has the lowest overall prosperity but the highest momentum. They’re starting from a lower base, but they’re moving up faster than anyone—and if that trajectory holds, the generational gap could narrow in the years ahead.

Prosperity is broadly felt, but many are still left out

Beyond generational gaps, prosperity gains are unevenly distributed across the economic spectrum. Unsurprisingly, higher-resource Americans are insulated from prosperity decline, while families with limited resources are disproportionately exposed to the pain of higher prices and wage growth that isn’t keeping up with inflation.

This is the shadow side of the prosperity paradox: the same forces that let some Americans thrive despite a tough economy are the ones that make it harder for others to get traction. The headline, “Prosperity is rising,” is true, but it’s not the whole truth.

Unfortunately, three in 10 (30%) Americans are at or below basic financial survival—23 percent have just enough money to cover the basics with nothing extra, and 7 percent cannot even cover the basics. These numbers are a reminder that for millions of Americans, prosperity isn’t about emotional balance or social connection. It’s about whether there’s enough to get through the month.

Likewise, lower-resource Americans are more than twice as likely to be losing ground: 20 percent of non-high-net-worth Americans say they feel less prosperous than six months ago, compared to just 9 percent of high-net-worth Americans. The prosperity paradox, in other words, has a floor—and those standing on it feel every bump in the economy that wealthier Americans are slower to notice.

The prosperity premium: Financial advice is linked to higher prosperity across all groups

Setting aside those Americans on the lowest economic rungs, people who work with a financial advisor score nine points higher on the prosperity index, and this advantage holds true even among those with less than $1 million in investible assets.

Those with an advisor, a financial plan, investments and insurance score even higher. What’s striking here isn’t just the size of the advantage—it’s that it shows up among Americans with less than $1 million in investible assets. And those with a plan report higher prosperity across wealth levels. Those working with an advisor report higher prosperity—a pattern consistent across non-high-net-worth households.

And it shows in the assets they own. Respondents who work with an advisor are far more likely to hold retirement accounts, emergency funds, and investment accounts. The gap is telling: people with advisors aren’t just wealthier—they’re more organized, more prepared, and more likely to have built the safety nets that let them sleep at night. That sense of readiness may contribute to the prosperity premium.

Looking ahead to the next six months, Americans are optimistic about the potential for an upswing in their personal lives. Four in 10 expect improvements in physical health, emotional health, household income, and household finances.

However, similar proportions are pessimistic about macro factors they can’t influence on their own. Just under half expect the national economy and political climate to worsen, and about four in 10 (43%) expect the cost of necessities to increase. The pattern is remarkably consistent: Americans are hopeful about the things they can do something about and pessimistic about the things they can’t. That’s not denial—it’s a rational allocation of optimism to where it can actually make a difference.

This latest survey shows that whatever direction the economy takes, personal prosperity increases for people who tune out the noise and take charge of their own lives. Americans aren’t out of touch with economic reality—they’re simply choosing to invest their energy where it pays off: in their relationships, their health, their habits, and their plans. And those with a financial plan also report a higher sense of prosperity.