Half Of Americans Lack Emergency Savings

Fewer than half of Americans have saved the recommended three months’ living expenses to shield them in emergencies, and women are less likely to have a rainy day fund than men, according to a poll conducted by financial website Bankrate.com.

The survey of 1,005 randomly selected Americans revealed that, while 77% of respondents have some type of savings account, just 46% possess the savings cushion recommended by financial advisors. Broken down by gender, 55% of the men surveyed—but only 39% of women respondents—said they have saved at least three months’ living expenses. The findings further showed that people earning less than $30,000 a year are especially at risk, with just 25% of this group saying they have socked away at least three months’ expenses in case of emergency.

“Half of all Americans might be on the brink of financial disaster,” said Greg McBride, senior financial analyst at Bankrate.com. “Many people living paycheck to paycheck would not be able to weather a financial storm, such as sudden unemployment or illness.”

When savers were asked about the amount of interest they are earning on their savings, the survey showed that 56% of respondents are earning 3% or more on their accounts. Researchers observed that, while more Americans appear to be earning at least 3% on their savings this year compared to 2006, these findings still indicate that nearly half of all these savings accounts are losing value due to inflation. Results also showed that men (61%) are more likely than women (49%) to be earning a minimum of 3% interest on their savings.