A recent study by Edelman Financial Engines reveals that nearly 60% of Americans feel they need an annual income of $100,000 to ease their worries about everyday expenses. The survey, part of the company’s “Everyday Wealth in America” study, also found that only 12% of Americans consider themselves wealthy. The study highlighted significant differences across age groups.
For Americans in their 30s, 71% said they needed at least $100,000 to feel financially secure, while for those in their 40s, the figure was 75%. Around 25% of all respondents indicated that an income of $200,000 would be necessary to eliminate stress about daily expenses. The research comes amid persistent high inflation and rising living costs.
The Consumer Price Index (CPI) rose 0.2% month-over-month and 2.5% year-over-year in August, marking the smallest 12-month increase since February 2021.
Americans feeling economic pressures
Key areas of concern include food and shelter costs, which were up 2.1% and 5.2%, respectively, compared to the previous year.
Edelman Financial Engines’ study also found that nearly two-thirds of Americans who don’t view themselves as wealthy believe that having $1 million would change that perception. Credit card debt continues to be a significant concern, with 44% of participants identifying it as the biggest obstacle to building wealth. Amin Dabit of Edelman Financial Engines noted that Americans are generally not feeling confident about their financial situation.
He attributed this to both external pressures, such as inflation, and internal pressures, including family responsibilities and mounting credit card debt. Overall, the economy and personal finances were the primary sources of anxiety for Americans, with 49% citing economic concerns and 48% personal financial issues. Politics was another significant driver, with 37% of respondents indicating it as a source of stress.
Key financial goals for Americans this year include building emergency savings, growing wealth, and saving for retirement.
