Storch Advisors CEO Gerald Storch discusses the state of the American consumer ahead of the holiday season on ‘Varney & Co.’
With Americans still feeling the pressure of higher prices, many believe they would have to take home at least $100,000 a year to avoid worrying about the daily cost of living, newly released data showed.
Edelman Financial Engines said Monday that 58% of Americans said their concerns about daily expenses would decrease if they received that level of annual income.
Higher percentages of Americans between the ages of 30 and 40 said they needed to earn at least $100,000, compared to older age groups, the company found. For those in their thirties this share was 71%, while 75% of those in their forties mentioned this figure.
woman counting money at modern office (iStock / iStock)
These findings were part of the company’s latest findings Study “Everyday Wealth in America”. which surveyed 3,000 Americans aged 30 or older online between June 12 and July 3, including 1,500 “affluent” individuals aged 45 to 70.
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Meanwhile, for a quarter of all Americans, $200,000 was the annual salary needed to eliminate stress over daily expenses, Edelman Financial Engines reported.
A couple reviews their finances at home. (iStock / iStock)
The data comes as Americans have long struggled with high inflation and costs of living.
In August, inflation, as measured by the Consumer Price Index, rose 0.2% month-on-month and 2.5% year-over-year in August, which the Bureau of Labor Statistics called the “smallest annual increase since February 2021,” according to FOX. Matters previously reported.
The cost of food and shelter is a pain point for American consumers. Food prices remained 2.1% higher in August than a year ago, while shelter prices rose 5.2% over the same period, the CPI said.
Edelman Financial Engines’ extensive research also found that only 12% of Americans consider themselves wealthy.
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Nearly two-thirds of Americans who don’t put themselves in that category said having $1 million would make them feel wealthy, according to the data.
About 44% of Americans “view credit cards (vs. other types of debt) as the biggest threat to their ability to build wealth,” the survey said.
Amin Dabit of Edelman Financial Engines said in a statement accompanying the recently released survey that Americans are “not overly confident in the state of their finances.”
Woman looking at paper bills and counting expenses, planning budget and home finance management (Lazy_Bear/iStock/Getty Images)
“Some of these concerns stem from external pressures, such as inflation or a turbulent election economy, while others are individual pressures, such as family responsibilities and mounting credit card debt,” he said. “Through this research, we are learning more about how these different factors all come together to impact the way Americans perceive and achieve their wealth.”
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Overall, the economy and personal finances were the top drivers of anxiety for Americans, with 49% calling the former their “biggest source” and 48% calling the latter, Edelman Financial Engines found. About 37% said politics.
Building emergency savings, increasing wealth and saving for retirement were among the “top 3” financial goals Americans reported this year.
Eric Revell contributed to this report.
