Despite growing wages and cooling inflation, a significant portion of Americans are feeling increasingly anxious about their finances, according to a new survey by Edelman Financial Engines.
The report found that half of Americans now consider the overall state of the economy and their personal financial situation as their primary sources of stress. This marks a notable increase from previous years.
Need for Higher Income to Alleviate Stress
To feel less stressed about money, nearly 60% of respondents said they would need a salary of at least $100,000, while a quarter indicated needing over $200,000. These figures far exceed the median U.S. earnings of around $60,000.
Younger Americans, in particular, expressed a greater need for higher incomes, with 71% of 30-somethings requiring at least $100,000.
Wealth Perception
When asked about the amount needed to feel wealthy, 65% of respondents said at least $1 million, and 19% said at least $5 million. Only 12% currently consider themselves wealthy.
Cumulative Impact of Inflation
The persistent financial anxiety, despite economic improvements, can be attributed to the cumulative impact of inflation over the past few years. The overall cost of living has increased by nearly 22% since the start of the COVID-19 pandemic, with housing costs rising even more significantly.
Key Takeaways:
- Persistent financial anxiety: Despite economic improvements, many Americans continue to feel stressed about their finances.
- Need for higher income: A significant portion of Americans believe they need a six-figure salary to alleviate financial stress.
- Cumulative impact of inflation: The ongoing impact of inflation has contributed to persistent financial anxiety.
- Wealth perception: Many Americans have a high threshold for considering themselves wealthy.