The average American emergency savings is only $500, significantly below the recommended three to six months of living expenses, leaving many ill-equipped for home repairs or emergencies. Homeowners in high climate-risk areas face challenges with insurance, as premiums soar in disaster-prone regions, leading to some homeowners considering going without insurance due to high costs. With over $12.7 trillion worth of U.S. real estate facing severe climate risk, insurers are either increasing rates or withdrawing from high-risk areas, leaving homeowners with limited coverage options.
For one in three Americans, a single surprise bill could spell financial crisis. That's according to a new survey by Empower, a retirement and financial services company, which found 32% of Americans have no emergency savings set aside. But not everyone is equally short on cash: Gen Zers have a median of $400 in their crisis funds, while boomers have saved up to five times as much.
Nearly 57% of workers from households earning less than $50,000 report delaying or canceling a major purchase. That compares with 48% of households making $50,000 to $100,000 and 35% of those earning more than $100,000. Among renters, nearly half (49%) say they were holding off on major purchases compared with 27% of homeowners. Roughly a third (32%) of respondents say their job security had no impact on their purchasing decisions.