Hard Times: 7 In 10 Americans Say They’re Living Paycheck To Paycheck – InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Top Stories
Topics
    • Life Insurance News
    • Annuity News
    • Health/Employee Benefits
    • Property and Casualty
    • Advisor News
    • Washington Wire
    • Regulation News
    • Sponsored Articles
    • Monthly Focus
  • INN Exclusives
  • NewsWires
  • Magazine
  • Webinars
  • Free Newsletters
Sign in or register to be an INNsider.
  • Exclusives
  • NewsWires
  • Magazine
  • Webinars
  • Free Newsletters
  • Insider Pro
  • About
  • Advertise
  • Editorial Staff
  • Contact
  • Newsletters

Get Social

  • Facebook
  • Twitter
  • LinkedIn
Newswires
Top Stories RSS Get our newsletter
Order Prints
February 8, 2022 Top Stories No comments
Share
Share
Tweet
Email

Hard Times: 7 In 10 Americans Say They’re Living Paycheck To Paycheck

Are Americans able to achieve financial security?
NBC - 8 WFLA (Tampa, FL)

In these tough financial times, a new study finds it's getting harder and harder for people to save any of their money. In fact, seven in 10 Americans say they're living paycheck to paycheck.

A recent survey of 2,007 adults found that 63 percent don't see themselves reaching a level of financial security that will allow them to live the lifestyle they want.

Lack of financial education and resources may be to blame, particularly for women, who were less likely to say they had access to these tools in comparison to men (65% vs. 84%).

Related stories

  • Cardin, Stabenow And Barragan Urge Expanded Dental Coverage For Children
  • Can a Friend Be a Life Insurance Beneficiary?

What does financial comfort really look like?

To educate themselves en route to financial comfort, most turn to social media (45%), their family (44%), or online media such as financial news websites (42%).

Conducted on November 22, 2021 by OnePoll on behalf of AmeriLife, the survey also explored the necessities for financial peace of mind among different groups.

While most women noted an absence of credit card debt (59%) as the most important requirement for financial comfort, the majority of men think it's homeownership (58%).

Saving is key to financial stability

Respondents also differed in what they consider to be essential for financial wellness. Seventy-nine percent of Americans earning over $150,000 found a savings account to be "very" important, compared to just 54 percent of those with an income of $60,000 to $89,999.

On average, respondents feel they'd need $686 of disposable income per month to feel financially comfortable.

When it comes to retirement, the average American plans to start thinking about it at age 40. However, seven in 10 confess their understanding of personal financial comfort kept changing after they reached adulthood.

"Things don't always go according to plan; no matter your income, having a budget is key," says Denny Southern, president of annuities and retirement planning for AmeriLife, in a statement. "If possible, a person should have six months of expenses readily available in savings. Once they achieve this, they can then target 30 percent of their income for things they want, and the remaining 20 percent for their savings. The earlier a person can do this, the further it will take them towards a comfortable retirement."

Overcoming financial hurdles

Seventy-six percent of millennials are likely to say that at some point in their adult life, a personal healthcare-related bill caused them to spend a large chunk of their savings. They also noted that keeping up with healthcare-related bills has derailed them from making other payments (70%), more so than any other age group.

For most of the millennial respondents, that sacrifice came in the form of a down payment or mortgage on a home (57% and 56%).

Regardless of age, the vast majority of Americans (82%) believe that financial comfort is important to their mental and emotional well-being.

"It's important to know how to offset costs of both planned and unforeseen events," adds Frank Tebyani, president of career agency distribution for AmeriLife. "It's not surprising to note, however and unfortunately, that only three in 10 respondents use financial advisors as a resource to educate themselves to attain financial comfort."

ESSENTIALS FOR FINANCIAL COMFORT:

* No credit card debt (57%)

* Good credit score (54%)

* Homeownership (53%)

* Residual/ancillary income (52%)

* Savings account/rainy day fund (52%)

* Being able to retire (51%)

Older

Sapiens Partners with WCL to Provide Connectivity for Lloyd's of London Bureau Services

Newer

What’s The Right Age To Buy Life Insurance?

Advisor News

  • Fed slows rate hikes even as Powell says there's more work to do
  • Mortgage rates in U.S. fall again, hit 6.09%
  • 1 in 3 Americans struggling financially but goal-setting is a game-changer
  • Advisors bet on US stocks to outperform in 2023 amid tech rebound
  • Investors want more ESG information from companies
More Advisor News

Annuity News

  • Study: Does pessimism really suppress annuity sales?
  • Sweet streams of income: ChatGPT, the bard of annuities
  • F&G Annuities & Life announces equity investment in life IMO SYNCIS
  • Investors scrambling to lock in rates propel annuity sales to record highs
  • North American and Annexus launch new fixed index annuity
Sponsor
More Annuity News

Health/Employee Benefits News

  • State: all insurers failed to comply with Oregon Reproductive Health Equity Act
  • Will plan fix California health care?
  • Insurance giant Elevance to move into 15th state
  • Medicare card scam targets seniors for personal info
  • Yes, states are re-checking Medicaid and CHIP eligibility starting in April
More Health/Employee Benefits News

Life Insurance News

  • Chris Wilson tells court former friend Murdaugh confessed he was ‘stealing money’
  • State's motive testimony could prolong Alex Murdaugh murder trial
  • Equitable expands portfolio in VUL market
  • New date set for billionaire suspect accused of bribing state cabinet member
  • House approves bill protecting life insurance payouts from bankruptcy
More Life Insurance News

- Presented By -

Top Read Stories

  • Chicago news roundup: PPP fraud uncovered in Chicago, informant reveals $100K bounty on FBG Duck and more
  • Gov. Carney: Enrollment on Delaware's Health Insurance Marketplace for 2023 Reaches All-Time High
  • 25 people charged in fake nursing diploma operation
  • Missouri Department of Insurance: Over $24 Million Returned To Missouri Insurance Consumers In 2022
  • Connecticut addressing broker shortage amid The Great Unwinding
More Top Read Stories >

FEATURED OFFERS

Meet Encova Life
We know agents matter. You can count on our life team to be high tech, high touch and responsive.

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Life Insurance News
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty
  • Advisor News
  • Washington Wire
  • Regulation News
  • Sponsored Articles
  • Monthly Focus

Top Sections

  • Life Insurance News
  • Annuity News
  • Health/Employee Benefits News
  • Property and Casualty News
  • AdvisorNews
  • Washington Wire
  • Insurance Webinars

Our Company

  • About
  • Editorial Staff
  • Magazine
  • Write for INN
  • Advertise
  • Contact

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2023 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • AdvisorNews

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.