The study conducted by YouGov found that Americans feel they need an average income of $186,000 to feel financially secure, which is more than double the $79,209 reported by the Census Bureau as the average income of full-time workers in 2022.
Among those who expressed feeling financially insecure, 45 percent are hopeful of achieving financial security in the future, while 30 percent believe they will never attain it.
The report also highlighted that older generations, particularly baby boomers and Gen Xers, feel less financially secure compared to millennials and Gen Z. A significant percentage of baby boomers and Gen Xers expressed doubts about ever achieving financial security.
Younger generations, on the other hand, were more optimistic about their financial future, with a majority believing they will reach financial security eventually.
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“Life always seems like it’d be better with just a little bit more money to spare,” stated Bankrate analyst Sarah Foster. “That’s even more true when the items Americans both need and want have been climbing in price. In the four years since the pandemic, comfort is no longer a commodity but a financial privilege, appearing to only be afforded to those wealthy enough to ‘eat’ the impact of inflation.”
Only six percent of respondents believe they currently earn enough to feel financially secure, while 37 percent are hopeful of achieving financial security in their lifetime.
Among those earning over $100,000 annually, 49 percent expressed optimism about attaining financial security, compared to 34 percent of those earning less than $50,000.
According to the report, Americans feel they would need to make $520,000 to feel wealthy and financially free, marking an 8 percent increase from the previous year.
“While earning more money can help mitigate the impact of inflation, it’s important to note that higher income doesn’t guarantee better financial management,” explained Ms. Foster. “Individuals with moderate incomes who prioritize saving for the future are more likely to achieve financial success than high-income earners who live beyond their means.”
The report underscores the financial strain Americans are experiencing due to inflation and the lack of income growth to match rising prices.
“Many Americans find themselves grappling with the combination of high prices, stagnant income growth, and a disconnect between their financial aspirations and reality,” noted Bankrate senior economic analyst Mark Hamrick.
From NTD News
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