29% re­port no sav­ings for emer­gen­cies

Los Angeles Times - - BUSINESS BEAT - By Ji m Puz­zanghera jim. puz­zanghera@ latimes. com

WASHINGTON — Nearly 3 in 10 Amer­i­cans have no emer­gency sav­ings, the high­est level in five years, ac­cord­ing to a new sur­vey.

Although wages have been ris­ing, 29% of adults have noth­ing to tap in case of a job loss or other fi­nan­cial dif­fi­culty, the sur­vey re­leased Tues­day by Bankrate. com found.

The f ig­ure, up from 26% last year, is the high­est level since the fi­nan­cial in­for­ma­tion web­site be­gan ask­ing the ques­tion in 2011 in the wake of the Great Re­ces­sion.

In ad­di­tion to those with no emer­gency sav­ings, 65% of re­spon­dents don’t have a suf­fi­cient emer­gency cush­ion, de­fined as enough sav­ings to pay at least six months of ex­penses, the sur­vey said.

“These re­sults are fur­ther ev­i­dence that Amer­i­cans re­main woe­fully un­der- saved for un­planned ex­penses,” said Greg McBride, Bankrate’s chief fi­nan­cial an­a­lyst.

“Noth­ing helps you sleep bet­ter at night than know­ing you have money tucked away for a rainy day,” McBride said. Fewer Amer­i­cans know that feel­ing. Just 22% of the 1,000 re­spon­dents said they had enough sav­ings to pay for at least six months of ex­penses, also the low­est level in five years.

About 15% have enough to cover three to five months, and 21% said they had some sav­ings but not enough for three months of ex­penses.

The de­cline in the per­cent­age of Amer­i­cans with emer­gency sav­ings came de­spite larger pay­checks.

In the 12 months through May 31, wages grew 2.3%, about a per­cent­age point greater than the pace of core inf la­tion.

Still, Amer­i­cans over­all feel bet­ter about their f inan­cial sit­u­a­tion this year, the sur­vey found.

Bankrate’s f inan­cial se­cu­rity in­dex, which mea­sures re­spon­dents’ views on a va­ri­ety of is­sues, has im­proved this year and has been in pos­i­tive ter­ri­tory for 13 straight months through June.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.