Three-quarters of Americans Feel Financially Insecure

Three-quarters of Americans reported they do not feel completely financially secure, which represented an increase from 72% in 2023, according to a Bankrate report.

The report found this group included 45% who were not currently ‘completely financially secure’ but believed they will be someday as well as 35% of respondents who reported they expect they never will be.

Older generations were more likely to say they are not completely financially secure and likely never will be as 42% of baby boomers and 37% of Gen Xers said they felt this way, compared to 21% of millennials and 13% of Gen Z respondents.

The report also revealed that Americans felt they would need to earn $186,000 per year to achieve financial security and comfort. This is more than two times the average salary of $79,209 earned by the typical full-time, year-round worker in 2022.

To feel financially free, that number rose to $520,000, which is an 8% increase from last year.

Among those who have an idea of the income needed to achieve financial security, only 37% of respondents said they are likely to reach that salary level, including 16% who said it is highly likely.

Meanwhile, 31% thought they were unlikely to earn the required income and nearly one in five (18%) said they will never be able to make that amount.

Only 6% said they are already earning the annual income they need to feel financially secure.

Sarah Foster, analyst at Bankrate, said: “Making more money is the secret to weathering inflation, but it’s also true that being a higher-income earner won’t automatically translate to being better at personal finance.

“Someone with a traditional middle-class salary who always tries to save for the future, no matter how small, is destined for financial success more than an ultra-wealthy earner who lives and spends beyond his or her means.”