Fully 27 percent of American adults — 66 million people — have no emergency savings, according to a survey by Bankrate.com. Financial planners urge setting aside six months of living expenses as a cushion against job loss or another calamity.
Members of the Silent Generation (71 and older) are in the best position: 47 percent of them have a six-month cushion. For Gen X (ages 36 to 51), just 33 percent have saved the suggested sum. And among millennials (18- to 35-year-olds), just 20 percent have an emergency savings account.
Moving beyond the paycheck-to-paycheck trap “takes time, especially because expenses grow faster than many Americans can save during the home-buying, family-raising years,” says Greg McBride, financial analyst at Bankrate.
Bankrate’s study was based on a survey of 1,000 Americans.