Nearly a fifth of Americans have no emergency savings, finds Empower
A new study by Empower reveals many Americans on the financial edge, with 37 percent of people surveyed saying they’re unable to cover an unexpected expense exceeding $400.
According to the newly published research report titled “In Case of Emergency,” roughly a fifth (21 percent) of Americans have no emergency savings whatsoever.
“Not all surprises are good, and people know it. The study suggests financial precarity at a time when household finances may be stretched due to rising prices and inflation,” Rebecca Rickert, head of communications at Empower, said in a statement. “Life happens, and people are stressed about the surprise expenses that could tip them off-balance.”
The study found that one in four individuals, or 25 percent, had to use emergency savings to cover basic living expenses in the past year. The median amount of emergency savings for Americans stands at $600, with men holding a median of $1,000 compared to $500 for women.
A majority of the population recognizes the importance of having emergency savings, with 62 percent indicating it as a priority. However, financial stress is rampant, with 54 percent expressing concerns about their ability to cover unexpected expenses. This worry is most pronounced among Millennials, with 60 percent reporting stress over potential emergencies.
The study also points to a link between relationship status and financial anxiety as more single adult respondents (58 percent) said they worry about insufficient emergency savings compared to married individuals (46 percent).
Not surprisingly, inflation and rising costs are major obstacles to building emergency funds for 57 percent of Americans this year. Nearly half, or 47 percent, find that regular monthly expenses are too
Read more on investmentnews.com
