How much do Americans need to earn to feel financially secure?

In a new survey recently published by Bankrate it was found that Americans need to earn at least $186,000 a year to feel financially securetaking into account that in recent years purchasing power has been affected by high inflation.

For respondents, financial security means keeping up with bill payments, having money for emergency or discretionary expenses, and increasing retirement savings. According to federal data, The current average family income is between $51,500 and $86,000 dollarswhich is why Bankrate highlighted that only 6% of American adults earn $186,000 or more.

Regarding this, Sarah Foster, an analyst from Bankrate, “inflation is the central axis of this narrative. Americans know where the bar is for living comfortably, but every time they reach it, the cost of living rises and the bar is getting lower and lower,” he said.

Although inflation has fallen from its all-time high of 9.1% in July 2022, it still remains above the 2% target, and High prices on food, goods, services, rents, among others continue to put pressure on the pockets of Americans especially those with low incomes.

That is why many American consumers, stifled by high inflation, are currently feeling financial stress from having to pay more for the same services and seeing their savings dwindle.

A survey conducted by the Federal Reserve Bank of Philadelphia revealed that 35% of Americans are worried about making ends meet. Foster commented that “Americans have their sights set on this high income and believe they need to earn more money Even if they know it’s unrealistic that they will ever earn that amount,” he said.

In recent years, earning more money has become a top priority for Americans, even if it means taking on a second job or cutting back on discretionary spending. The Bankrate survey found that The average citizen says that to be rich you must earn $520,000 a year compared to $483,000 last year.

The report concluded that At least people from younger generations feel much more optimistic about their rising incomes. Unlike other generations, who feel more concerned as they approach retirement age.

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