One in three American have no financial reserves, according to a new report.
The report says that nearly one in four Americans (24%) were able to set aside enough money to go five or more months without a paycheck and still pay their bills. However, one in three say they could not go any amount of time without a paycheck before resorting to skipping bill payments.
Country Financial, Bloomington, Ill., published this finding in a summary of results from a new survey on savings. The report is based on a national telephone survey of 3,000 Americans and is compiled by Rasmussen Reports, LLC (www.rasmussenreports.com), an independent research firm.
According to the survey, 68% of Americans say their incomes have not grown. And 71% report their expenses have.
As a result, many Americans may have focused their income on meeting more immediate expenses. Only five percent say the economic downturn caused their mortgage or rent payments to suffer. Just 14% report their ability to pay debts was affected.
Among the report’s other findings:
- Nearly one in three (30%) say their personal savings and investments have suffered the most due to the economic downturn.
- Savings for retirement was the second most affected area (25%).
- Gen Y: Only 40% are worried about meeting financial obligations.
- 31% of 18-29 year olds say their personal savings and investments were the hardest hit.
- Gen X: Half (50%) of 30-39 year olds and 31% of 40-49 year olds say they could not go any amount of time between jobs and still pay their bills.
- Baby Boomers: Thirty-seven percent of those nearing retirement age (50-64) say their retirement savings have suffered most.
- Retirees: For those most likely in retirement (65 or older), 41% claim their personal savings and investments suffered most. However, they are the least worried about fulfilling their fiscal obligations (38%)