Two-thirds of Americans have saved less than the recommended six months-worth of expenses and 50 percent have saved less than three-months-worth of expenses.
Just over one-in-four Americans (26 percent) have no emergency personal savings, according to a new Bankrate.com report.
Two-thirds (67 percent) have saved less than the recommended six months-worth of expenses and 50 percent have saved less than three-months-worth of expenses, The percentage of Americans who have saved three months expenses declined from 45 percent last year to 40 percent.
“Americans continue to show a stunning lack of progress in accumulating sufficient emergency savings,” Greg McBride, CFA, Bankrate.com’s chief financial analyst, said in a statement.
The emergency personal savings data is included in Bankrate’s monthly Financial Security Index, a measure of how secure Americans feel about their personal finances compared with a year ago. The highest percentage of respondents feel their financial situation, job security, debt levels and accrued personal savings are about the same. Regarding their overall financial situation, half said it is unchanged from last year, while the other half are evenly split over whether it is better or worse.
One-fourth report feeling more secure about their job, compared with 17 percent who said they are less secure. One-third of Millennials said they felt more secure, compared with 15 percent of workers who were at least 65.
On the personal savings front, one-third (34 percent) of respondents said they are less comfortable with the amount of money they have in savings vs. 18 percent who said they are more comfortable. Nearly four-in-ten women respondents (37 percent) said they were less comfortable, compared with 30 percent of men.
As to debt, half of respondents are nearly evenly divided on whether they are more comfortable (23 percent) with the amount of debt they have compared with a year ago or less comfortable (20 percent).
But nearly three-in-ten report their net worth is higher compared with 12 months ago, while 21 percent said it is lower.
Almost twice as many Americans profess to enjoy saving more than spending (62 percent to 34 percent), a Gallup from earlier this year found. Among Affluent investors surveyed by Spectrem’s Millionaire Corner, saving more and spending less consistently top their list of financial New Year’s resolutions, followed by paying down debt.
Saving is not only on the resolve-to-do list, it is also on the do-over list. Nearly half (46 percent) of affluent households with a net worth between $100,000 and $1 million surveyed by Spectrem’s Millionaire Corner—the highest percentage of respondents—said that they wish they had saved more prior to the 2008 economic collapse. That percentage jumped dramatically to 63 percent among Millennial and late Gen Xers surveyed.
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