The Covid pandemic and inflation have influenced the financial mood of Americans.
Photo: Karolina Grabowska / Pexels
Facing an unsettling year, high inflation and the “wealth explosion” in the tech sector that has led to a widening inequality gap, Americans believe they need to earn $122,000 a year on average to feel financially fit.
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 in general, the respondents increasingly lack security in the US economy (down 2% from last year and 12% from pre-pandemic levels).
Perceived personal financial health is also slipping. 34% say they are “very financially healthy” today, compared to 48% in the first quarter of 2021.
Overall, however, the US economy is recovering. The US stock market has bounced back enthusiastically from its 2020 plunge into bearish territory.
And while the pandemic has been very disruptive to earnings, the job market is strong: more than 80% of the jobs lost due to the pandemic have been recovered, unemployment rates have normalized and the Great Renunciation put job seekers in an advantageous bargaining position.
Despite the general 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 in 2022.
Key takeaways from the survey:
– Americans have a feeling of decreased financial confidence, both in your personal finances and in the economy in general.
– Americans surveyed say a person needs to earn $122,000 a year to feel financially healthy.
– Debt is a growing concern. 49% of Americans feel their debt is unmanageable.
– Americans are concerned about the income-expenditure ratio; 37% say they would be anxious about an unexpected $10 expense0.
– The 2022 resolutions are about financial health; 37% prioritize paying down debt and 36% focus on retirement planning.
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eldiariony.com
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.