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Survey Shows 1 in 3 Have No Financial Reserves

January 19, 2012 2:04 am

According to a recent survey of 3,000 Americans, 68 percent say their incomes have not grown, while 71 percent report their expenses have. When it comes to savings, only one in four (24 percent) were able to set aside enough money to go five or more months without a paycheck and still pay their bills, and one in three say they could not go any amount of time without a paycheck before resorting to skipping bill payments.

Conducted by independent research firm Rasmussen Reports, LLC on behalf of insurance firm Country Financial, the survey underscores that many Americans lack a financial reserve, explaining why nearly half of all respondents are worried about meeting fiscal obligations this year. Nearly one in three (30 percent) reported that their personal savings and investments suffered the most due to the economic downturn, with savings for retirement coming in as the second most-affected area (25 percent).

The survey also revealed, however, that Americans are now increasingly focused on saving for the future. According to a December 2011 Country Financial survey, they identified personal and retirement savings as financial priorities to work on in 2012.

Fiscal concerns vary somewhat from generation to generation, according to the survey:
  • Gen Y: Only 40 percent are worried about meeting financial obligations. Still, 31 percent of 18-29 year olds say their personal savings and investments were the hardest hit.
  • Gen X: Half (50 percent) of 30-39 year olds and 31 percent of 40-49 year olds say they could not go any amount of time between jobs and still pay their bills.
  • Baby Boomers: Thirty-seven percent of those nearing retirement age (50-64) say their retirement savings have suffered most.
  • Retirees: For those most likely in retirement (65 or older), 41 percent claim their personal savings and investments suffered most. However, they are the least worried about fulfilling their fiscal obligations (38 percent).
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