In the face of an unsettling year, high inflation, and the “wealth explosion” in the tech sector that has led to a widening inequality gap, Americans feel they need to earn $122,000 to the year on average to feel that they are in good financial shape.
These data were the result of a recent Harris Poll survey commissioned by Personal Capital and Empower, to 2,006 people in the last quarter of 2021.
The data shows that overall, respondents are increasingly insecure about the US economy (down 2% from last year and 12 % compared to pre-pandemic levels).
Perceived personal financial health is also declining. The 34% say they are “very financially healthy” today, in compared to 48 % in the first quarter of 2021.
However, in general terms, the US economy is recovering. The US stock market bounced back enthusiastically from its 2020 plunge into bearish territory.
And although the pandemic has been very disruptive to income, the labor market is strong: more than 80% of jobs lost due to the pandemic they have recovered, unemployment rates have normalized and the Great Resignation put job seekers in an advantageous position to negotiate.
Despite the overall drop in confidence of Americans surveyed, both on a personal and macroeconomic level, the survey found that people are generally financially stable and many are prioritizing their finances on 2022.
Key Survey Findings:
– Americans have a sense of decreased financial confidence, both in your personal finances and in the economy a in general.
– Americans surveyed say that a person needs to earn $80,000 a year to feel financially healthy.
– Debt is a growing concern. The 49% of Americans feel their debt is unmanageable.
– Americans feel concerned about the income-expenditure ratio; The 37% say they would be anxious about an unexpected expense of $100.
– The resolutions of 2022 have to do with financial health; The 37% prioritizes the payment of the debt and the 36% focuses on retirement planning.
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