How Long Could A Typical American Live Off Savings?

According to a new survey, 40% of Americans wouldn’t be able to survive on theirs for longer than four months.

The poll of 2-thousand U.S. adults between the ages of 18 and 58 also reveals:

  • Nine in 10 people have dipped into their savings accounts for emergencies since the pandemic began in March 2020.
  • Those emergencies include unexpected debt (16%), rising rent or mortgage payments (16%) and unexpected medical bills (14%).
  • People remain optimistic, as 75% think their saving habits will improve over the next year.
  • While 71% are satisfied with their current cash savings, they think there are things that could help them save even more. Those include monthly savings challenges with incentives or prizes (60%), reminders for when bills are due (52%) and a financial adviser or money mentor (52%).
  • But only 24% think having a higher income would help them save more.
  • People have added an average of $23,474 to their cash savings accounts over the last year and expect to add a similar amount in the next 12 months.
  • When it comes to finances, 46% rely on recommendations from family and social media, and 45% count on financial advisors.
Hands of a young Asian businessman Man putting coins into piggy bank and holding money side by side to save expenses A savings plan that provides enough of his income for payments.

Photo: ArLawKa AungTun / iStock / Getty Images

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