Are You Ignoring This Greatest Financial Risk?
You’re saving, investing, maxing out your retirement accounts or even on your path to homeownership, which are all good for securing your future. However, you might be ignoring one of the biggest financial risks.
According to Northwestern Mutual's 2026 Financial States of America report, more than half of Americans (52%) admit they place too much emphasis on building wealth and not enough on protecting what they’ve built. Below we explore protecting your wealth and who's wealth could be at risk.
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Younger Generations Are Most at Risk
The financial protection gap appears largest among younger adults. Based on the report, approximately 62% of millennials aren’t prioritizing protecting their finances, followed by Gen Z at 57%.
Their priority is wealth growth through speculative investments, such as cryptocurrencies, sports betting/prediction markets, options trading and meme stocks. Seventy-three percent acknowledge doing so because they feel financially behind and think speculative investments offer a faster path to achieving their financial goals than traditional methods.
The same generations are also relying on short-term consumer debt. For example, roughly half of Gen Z and millennials plan to use buy now, pay later for large purchases in 2026, with one-third planning to use it for daily purchases.
For younger adults, not protecting your finances can create larger financial problems if income suddenly stops because of illness, job loss or caregiving responsibilities.
Working With a Financial Advisor Closes the Gap
One of the most important findings in the report is that 71% of Americans said they feel more financially secure working with a financial advisor. The difference isn’t income level. In most cases, it’s having a financial plan that often includes emergency reserves, insurance coverage, estate planning, tax strategies and healthcare planning alongside investment growth.
Building wealth is important. But protecting that wealth may ultimately determine whether you can maintain financial stability when life becomes unpredictable.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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