It found that Americans with a bachelor’s degree or higher were “by far” most likely to say that they are doing OK financially or living comfortably and report an improvement in their finances over the past year.
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The survey also found that 39 percent had applied for credit in the prior 12 months – up from 37 percent the year before – and 26 percent of those households were turned down or given less credit than they applied for, down from 32 percent in 2014. 22 percent are working two or more jobs to make ends meet and when it comes to saving for retirement, almost half say they’re not confident or just slightly confident about their ability to invest.
Most concerning, 31 percent of non-retired respondents report that they have no retirement savings or pension at all, including 27 percent of non-retired respondents age 60 or older.
Among individuals who went to college, more than half of adults younger than 30 took on at least some debt.
What’s more, “the types of challenges differ greatly by income”, the report found.
“There is little question that, on the whole, the financial well-being of Americans seems to have improved relative to the prior year and relative to the year before that”, the Fed researchers concluded.
Additional findings from the Federal Reserve show individual consumers are 9 percentage points more likely to report their financial well-being improved in the past year rather than adecline, according to the report.
“Nearly half of those who had been finding it hard in 2014 now say that they are actually worse off than they had been a year earlier”, the Fed noted. More than 5,600 respondents completed the survey.
Looking at those respondents who do have self-directed retirement savings (including 401 (k), 403 (b), IRA, and savings outside retirement accounts), the survey reveals 49% are either “not confident” or only “slightly confident” in their ability to make the right investment decisions when investing money in these accounts. Topics covered in the survey and the report include savings behavior, economic preparedness, banking and credit access, housing and living arrangements, auto lending, education and student debt, and retirement planning.
About half of people said they are better off than their parents were at the same age, while 26 percent are “about the same” and nearly 23 percent said they’re worse off.
Still, the total percentage of people who would struggle in an emergency expense has improved over the past few years. Similarly, 46 percent of respondents who had a major medical cost past year said they have debt from that expense.
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Twenty-two percent of employed adults indicate that they are either working multiple jobs, doing informal work for pay in addition to their main job, or both. Fifteen percent said their spending in the previous year exceeded their income, down a bit from 2014.
