A recent report has found out several interesting facts related to the financial situations of the Americans. The report says that a substantial number of Americans have no retirement benefits. Te report also reveals that educated Americans who have no loan liabilities are doing slightly better. The report also highlighted the financial concerns of Americans and got a gauge of their ability to pay up for emergencies.
No Retirement Benefits Savings
The Federal Reserve report on the economic well-being of U.S. households in 2015 was released on Wednesday. In the study, about 31% Americans admitted that they have no retirement benefits at all. These people were non-retired. This percentage was the same in the 2014 study as well.
Some of the respondents said that they were living comfortably or doing okay. A few even admitted that they were expecting an income growth in the future.
The Socio-Economic Difference
The study also exposed the fact that respondents who had lower levels of income, who were single parents, who were racial and ethnic minorities and the ones who had a student loan to pay off were facing some level of difficulty getting by financially. People who belong to the higher socio-economic circumstances had a greater degree of advancement.
The report also found out that the people who had a bachelor’s degree or higher were more financially comfortable while compared to the previous year. If one of these respondents stated that he was financially worse off, 2 such respondents said that they were doing better. People who have just a high school degree or those who even lack that had mixed opinion on the matter. About half said that they were better off and half said that they were worse.
When asked about accumulating $400 for an emergency expense, 47% said they would use cash or money from their savings or checking account. About 29% said that they would use a credit card and pay it in the next statement, 17% said that they would use the credit card and pay it in installments while 13% would need to borrow it.
The Financial Concern
The respondents who make less than $40,000 annually are more worried about rent, gas and other regular bills. On the other hand, the people who earned more than $40,000 annually were more concerned about retirement benefits and education expenses.