Storch Advisors CEO Gerald Storch speaks with Varney & Co. about the state of the American consumer ahead of the holiday season.
Americans are still feeling the pain of rising prices, with many believing they would have to bring home at least $100,000 a year to not have to worry about the cost of daily living, newly released data shows.
Edelman Financial Engines reported Monday that 58% of Americans said that earning that level of annual income would make them less worried about their day-to-day expenses.
According to the company’s survey, Americans in their 30s and 40s are more likely than older age groups to say they need to earn at least $100,000: 71% of those in their 30s and 75% of those in their 40s.
Woman counting money in a modern office (iStock / iStock)
These findings are part of the company’s latest “Everyday Wealth in America” study, which was conducted online from June 12 to July 3 among 3,000 Americans aged 30 and over, including 1,500 “high net worth” individuals aged 45 to 70.
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Meanwhile, a quarter of Americans would need an annual income of $200,000 to eliminate stress about everyday expenses, according to a report from Edelman Financial Engines.
A couple reviewing their finances at home. (iStock / iStock)
The data comes at a time when Americans have been struggling with high inflation and rising costs of living for quite some time now.
Consumer Price Index inflation rose 0.2% month-on-month and 2.5% year-on-year in August, which the Bureau of Labor Statistics called “the smallest 12-month increase since February 2021,” FOX Business previously reported.
The costs of food and housing have been a headache for U.S. consumers: Food prices rose 2.1% in August from a year earlier, while housing prices rose 5.2% over the same period, according to the CPI.
The extensive Edelman Financial Engines survey also found that only 12% of Americans consider themselves wealthy.
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Nearly two-thirds of Americans who don’t fit into that category said they would feel wealthy if they had $1 million, according to the data.
The survey found that about 44% of Americans “consider credit cards to be the biggest threat to their ability to build wealth (compared to other types of debt).”
Americans “are less confident about their financial situation,” Amin Davit of Edelman Financial Engines said in a statement accompanying the newly released survey.
Woman looking at paper bills, calculating expenses, planning budget and household finances (Lazy_Bear/iStock / Getty Images)
“Some of this anxiety stems from external pressures like inflation and election-related economic upheaval, but there are also personal pressures like family responsibilities and rising credit card debt,” he said. “Through this research, we’re learning more about how these different factors combine to affect how Americans perceive and realize wealth.”
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Overall, the economy and personal finances are the biggest sources of anxiety for Americans, with 49% calling the former the “biggest cause” and 48% naming the latter, according to the Edelman Financial Engines survey. About 37% cited politics.
Saving for emergencies, growing assets, and saving for retirement were among the “top three” financial goals cited by Americans this year.
Eric Revell contributed to this report.
