Even after the jolt of the Great Recession, a new study finds that most Americans are not financially prepared for an emergency. A survey released today by financial data publisher Bankrate.com found that 24% of consumers have the recommended cushion of money to cover at least six months’ expenses set aside. The vast majority are not ready for contingencies; another 24% don’t have any emergency savings at all. With 6.2 million people out of work for half a year or longer, the survey results underscore just how unprepared many are at a time when both job security and the economy pose concerns. “The majority of Americans still have much work to do in building an adequate emergency savings cushion,” says Greg McBride, senior financial analyst for Bankrate. The survey results are somewhat surprising, he says, in that the high rates of both joblessness and underemployment dating to the 2007-09 recession have driven home the need for emergency savings. Yet the challenges of the economy and job market also have limited the ability to sock money away for unexpected expenses. Respondents under age 30 and those with annual incomes under $30,000 were the most likely to report having no emergency savings whatsoever. Those likeliest to have six months’ expenses in an emergency fund were higher-income households and people in their 50s and 60s.
Today’s poll question: Do you have an emergency savings account that sets aside money to cover expenses for at least six months?
