A new survey from Bankrate reveals that 77% of U.S. adults believe they aren’t completely financially secure. This figure has been increasing, rising from 72% in 2023 to 75% in 2024. Part of the reason why many people feel financially insecure is the rapid inflation over the past few years, which has eroded the purchasing power of their salaries.
For example, a $100,000 salary in January 2020 would need to be $124,353 in April 2025 to maintain the same buying power, according to the U.S. Bureau of Labor Statistics (BLS). Many people need to spend more every year because of inflation,” says Wookjae Heo, an assistant professor of financial counseling and planning at Purdue University. However, their income has not increased significantly.
Most people’s salary is static.”
The survey reveals that more than one in four (26%) U.S. adults believe they would need to earn $150,000 or more per year to feel financially secure. This is almost twice the average national salary, which was $81,515 in 2023. However, the current market uncertainty and hiring slowdowns mean that finding a more lucrative job could be challenging for many.
Generational differences in perceptions of financial security also emerged from the survey.
Americans’ inflation-driven financial insecurity
Gen Xers (ages 45-60) are the most likely to report feeling financially insecure (84%), compared to 80% of Gen Zers (ages 18-28), 79% of millennials (ages 29-44), and 69% of baby boomers (ages 61-79).
Women also report higher levels of financial insecurity compared to men. More than one-third (35%) of women say they aren’t financially secure and never will be, compared to 29% of men. Income levels strongly correlate with perceived financial security.
About 2 in 5 (42%) Americans earning $100,000 or more per year feel completely financially secure, compared to only 12% of those making under $50,000 annually. Interestingly, there is a significant gap between the income levels that would make people feel comfortable and those that would make them feel rich. More than half of Americans (55%) say they would need to earn $200,000 or more per year to feel rich, and 26% believe they would need at least $1 million annually.
Tiffany Morrison, a 38-year-old single mom in Ocala, Florida, exemplifies the financial strain felt by many. Earning $49,000 a year as a title agent for a real estate company, Morrison has only $500 in savings after a recent $1,000 car repair bill. I’m one paycheck from losing it all,” Morrison says, highlighting the precarious financial situation faced by many Americans today.
With economic challenges and job market uncertainties persisting, achieving financial security remains a formidable task for a large portion of the U.S. population.