3 Out Of 4 Americans Don’t Have Sufficient Savings
June 26, 2012 by Bryan Nash
A new survey conducted by Bankrate.com shows that only 25 percent of Americans have saved six months of expenses. And 28 percent have no savings at all.
The data reveal the dire reality for many underemployed and unemployed Americans.
“Incomes are largely stagnant, so it’s difficult for people to make significant headway on savings when household expenses are creeping higher but incomes are not,” said Greg McBride, senior financial analyst for Bankrate.com. “Prolonged unemployment has also depleted the savings of many people who at one time had a more appropriate cushion.”
The survey concluded that nearly 50 percent of people did not have three months of savings. Some people may use this figure as proof of an improving economy — six years ago, 61 percent did not have three months of savings. But the reality is that Americans were wealthier in 2006.
The discrepancy is likely due to the fact that, six years ago, people were more confident in their earning potential. Plus, analysts note that savings accounts were lower in 2006 because people viewed their house as an investment.