Menu
Banking Exchange Magazine Logo
Menu

Three-quarters of Americans Feel Financially Insecure

Figures included 35% who believe they will never achieve financial security

  • |
  • Written by  Banking Exchange staff
 
 
Three-quarters of Americans Feel Financially Insecure

Three-quarters of Americans reported they do not feel completely financially secure, which represented an increase from 72% in 2023, according to a Bankrate report.

The report found this group included 45% who were not currently ‘completely financially secure’ but believed they will be someday as well as 35% of respondents who reported they expect they never will be.

Older generations were more likely to say they are not completely financially secure and likely never will be as 42% of baby boomers and 37% of Gen Xers said they felt this way, compared to 21% of millennials and 13% of Gen Z respondents.

The report also revealed that Americans felt they would need to earn $186,000 per year to achieve financial security and comfort. This is more than two times the average salary of $79,209 earned by the typical full-time, year-round worker in 2022.

To feel financially free, that number rose to $520,000, which is an 8% increase from last year.

Among those who have an idea of the income needed to achieve financial security, only 37% of respondents said they are likely to reach that salary level, including 16% who said it is highly likely.

Meanwhile, 31% thought they were unlikely to earn the required income and nearly one in five (18%) said they will never be able to make that amount.

Only 6% said they are already earning the annual income they need to feel financially secure.

Sarah Foster, analyst at Bankrate, said: “Making more money is the secret to weathering inflation, but it’s also true that being a higher-income earner won’t automatically translate to being better at personal finance.

“Someone with a traditional middle-class salary who always tries to save for the future, no matter how small, is destined for financial success more than an ultra-wealthy earner who lives and spends beyond his or her means.”

back to top

Sections

About Us

Connect With Us

Resources

 

Banking Exchange

This Is the Week to Register for the
BANKING EXCHANGE FLY-IN CONFERENCE

CHICAGO, Illinois — NOVEMBER 7, 2024
Registration closes at 5 pm central time Tuesday, November 5


Conference to be held at the University of Chicago, Booth Business School Downtown

This one-day event is open to all executives at U.S. financial institutions. On the agenda, will be: