NEW YORK, June 27, 2017 /PRNewswire/ -- Nearly a
quarter of Americans have no emergency savings, according to a new
report from Bankrate.com. However, the percentage of those without
an emergency fund currently sits at a six year low, down to 24%
this year from 28% last year. Additionally, Americans with an
adequate savings cushion – enough to cover six months' expenses or
more – jumped to 31% (from 22% in 2015 and 28% last year), a new
high during the seven years Bankrate.com has been polling on this
subject. Click here for more information:
http://www.bankrate.com/banking/savings/financial-security-0617/
Overall, Americans are doing a better job at saving. Those with
some savings, but not enough to cover three months' expenses,
increased from 18% to 20%. Americans with enough savings to cover
3-5 months' expenses nosed higher from 16% to 17%.
Bankrate.com chief financial analyst Greg McBride, CFA commented, "With all the
spending that is not happening in the economy, something
else apparently is – Americans are putting money in savings! We're
still not out of the woods yet – everyone should strive to have at
least six months' expenses socked away for the unexpected – but
it's encouraging to see progress being made."
The tendency to have no emergency savings is highest among those
ages 53-62, who seem to be all-or-nothing, as they have an equal
propensity to have no emergency savings and enough to cover six
months' expenses (32% for each). After that, the likelihood of
having zero emergency savings declines substantially; the oldest
Americans (63+) report the lowest likelihood of having nothing set
aside for a rainy day (17%) and the highest probability of at least
a six month reserve (44%).
While one quarter of Millennials and Generation Xers lack any
emergency savings, younger Millennials (ages 18-26) seem to be well
on their way; they have the highest propensity to have enough to
cover 3-5 months' expenses (31%). Generation X is most likely to
have some savings, but not enough to cover three months' expenses
(28%).
Not surprisingly, those with enough emergency savings to cover
at least six months' expenses tend to be higher income and more
highly educated, while those with no emergency savings are more
likely to be lower income and have lesser levels of education. That
being said, lower-middle income households ($30K-$49.9K per year) are more likely to have
enough savings to cover six months' or more of expenses than to
have no savings at all.
Residents of the Midwest are most likely to have enough to cover
six months' expenses or more, while residents of the South are
least likely.
The Bankrate.com Financial Security Index hit a record high of
106.7 this month. All five components (job security, comfort level
with savings, comfort level with debt, net worth and overall
financial situation) show improvement versus one year ago, and each
of the five had a higher reading than one month ago.
Those reporting increased job security outnumber those feeling
less job security by 2-to-1. Those reporting higher net worth
exceed those reporting lower net worth by a greater than 3-to-1
margin, the strongest reading ever. And, Americans saying their
overall financial situation has improved top those saying it has
deteriorated by more than 2-to-1.
Women's feelings of financial security posted the highest
reading in two years (since June
2015), aided by an increased comfort level with debt.
The survey was conducted by Princeton Survey Research
Associates International. PSRAI obtained telephone interviews with
a nationally representative sample of 1,003 adults living in the
continental United States. Interviews were conducted by
landline (500) and cell phone (503, including 309 without a
landline phone) in English and Spanish by Princeton Data Source
from June 1-4, 2017. Statistical results are weighted to
correct known demographic discrepancies. The margin of sampling
error for the complete set of weighted data is plus or minus 3.7
percentage points.
About Bankrate.com:
Bankrate.com provides consumers
with the expert advice and tools needed to succeed throughout
life's financial journey. For over two decades, Bankrate.com has
been a leading personal finance destination. The company
offers award-winning editorial content, competitive rate
information, and calculators and tools across multiple categories,
including mortgages, deposits, credit cards, retirement, automobile
loans and taxes. Bankrate aggregates rate information from over
4,800 institutions on more than 300 financial products. With
coverage of over 600 local markets, Bankrate generates rate tables
in all 50 U.S. states. Bankrate develops and provides web services
to more than 100 cobranded websites with online partners, including
some of the most trusted and frequently visited personal finance
sites on the internet, such as Comcast, Yahoo!, CNBC and
Bloomberg. In addition, Bankrate licenses editorial content to
more than 500 newspapers on a daily basis including The Wall Street
Journal, USA Today, The New York Times and
The Los Angeles Times.
For more information:
Ryan Feldman
Public Relations Specialist
ryan.feldman@bankrate.com
917-368-8637
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SOURCE Bankrate.com