60% of Millennials are stressed about a
financial emergency striking
GREENWOOD VILLAGE, Colo., July 2,
2024 /PRNewswire/ -- Some 37% of Americans can't afford an
unexpected expense over $400, and
almost a quarter (21%) have no emergency savings at all, according
to new Empower research.
"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," says
Rebecca Rickert, head of
communications at Empower. "Life happens, and people are
stressed about the surprise expenses that could tip them
off-balance."
In fact, 1 in 4 (25%) people dipped into emergency savings to
cover basic living expenses in the past year. The median emergency
savings for Americans is $600; men
have double the stores compared to women – with a median of
$1,000 versus $500.
For 62%, having a dedicated emergency savings is a priority, yet
nearly half (47%) of people say regular monthly expenses are too
high for them to put money away.
Americans agree that being able to weather unexpected financial
needs creates a sense of Financial Happiness, and many are
taking steps to plan for the unplanned.
Despite economic hardships, nearly half (43%) of Americans (and
51% of Baby Boomers) have contributed to their rainy-day fund
within the past year – though just 14% contribute regularly.
There may be a silver lining: 34% believe they could handle any
emergency expenses that arise.
More key findings:
- Ready or not: Over half (54%) report stressing
about paying if and when disaster strikes, with Millennials (60%)
worrying the most.
- Feeling the squeeze: Rising prices (57%) are
keeping Americans from building up their emergency funds.
- Emergencies of all sizes: Roughly 1 in 5 have had
to dip into their funds for car expenses (21%), home repairs (21%),
and medical expenses (19%), debt payments (17%), and job loss
(10%).
- Debt dilemma: Paying down debt is a higher priority than
saving for an emergency for 57% of Americans.
- Cash stash: 30% of adults keep their emergency nest
egg in cash and many are using a high-yield savings account to help
their money grow (33%).
Visit The Currency™ to read Empower's full research
report, "In Case of Emergency."
*ABOUT THE STUDY
The Empower "In Case of Emergency"
study is based on online survey responses from 1,192 Americans ages
18+ fielded by YouGov from April 12 –
15, 2024. The survey is weighted to be nationally representative of
U.S. adults (aged 18+).
ABOUT EMPOWER
Empower, a leader in financial
planning, investing, and advice, is dedicated to creating
financial freedom through people and technology. It administers
approximately $1.6 trillion in assets
for more than 18.6 million individuals1 and is
recognized as the nation's second-largest retirement services
provider2 by total participants. Connect with us on
Empower.com, and subscribe to The Currency™ for the
latest money news and views shaping how we live, work and play.
Media contacts:
Rebecca
Rickert Rebecca.Rickert@empower.com
Katelyn Kwiatkowski
Katelyn.Kwiatkowski@empower.com
1 As of May 2, 2024. Assets under
Administration (AUA) refers to the assets administered by Empower.
AUA does not reflect the financial stability or strength of a
company.
2 Pensions & Investments 2022 Defined Contribution Survey.
Ranking measured by total number of participants as of September 2022.
Empower refers to the products and services offered by Empower
Annuity Insurance Company of America and its subsidiaries. This
material is for informational purposes only and is not intended to
provide investment, legal, or tax recommendations or advice.
The information contained herein is being provided for
discussion purposes only and does not constitute an offer to sell,
or a solicitation of an offer to buy or sell securities. All
visuals are illustrative only.
"EMPOWER" and all associated logos and product names are
trademarks of Empower Annuity Insurance Company of America.
© 2024 Empower Annuity Insurance Company of America. All rights
reserved.
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SOURCE Empower