Wages are finally rising. Unemployment is the lowest it’s been since 2007. Inflation remains muted.
But 31% of American adults, or 76 million people, say they are struggling to get by or just barely making it, according to the Federal Reserve Bank’s latest survey on Americans’ economic well-being, which looked at 2015.
The Fed survey highlights many of Americans’ continuing economic worries. Some 46% of adults say they can’t cover an unexpected $400 expense or would have borrow or sell something to do so.
While lower income Americans said they’d have the toughest time handling this emergency charge, some 38% of middle class Americans reported they’d have trouble too. Even 19% of those raking in over $100,000 a year said they couldn’t pay the bill promptly.
About one-third of Americans also say that their income varies month-to-month, mainly because they have an irregular work schedule. Some 45% say their expenses shift each month. Some 42% of those with these volatile income streams or expenses say they struggled to pay the bills at least once in the past year.
When it comes to savings, the picture is mixed.
Nearly half of Americans spend less than their incomes. That savings rate is 9 percentage points higher than it was two years ago.
But nearly one-third of non-retired adults have not socked away anything for their Golden Years nor do they have a pension. This includes 27% of those age 60 and older.
This is probably why many Americans plan to continue working when they hit retirement age. Some 42% expect to either retire at age 70 or older or to never retire.
Full article: 76 million Americans are struggling financially or just getting by (CNN Money)