More than four in 10 U.S. adults reported trouble affording at least one basic necessity in the past year, while more than half said they lacked enough emergency savings to cover three months of expenses, according to a new Pew Research Center analysis.
Pew’s Oct. 14 analysis draws on a survey of 5,166 adults conducted Aug. 24-30 and some questions from a July 20-Aug. 9 survey. Only people who took part in both were included in this analysis. The results describe respondents’ reported experiences, not an independent audit of their finances.
Sixty percent said their current income was not enough for the kind of life they wanted, and 53% said they did not have a three-month emergency fund. Twenty-seven percent said they could not pay some monthly bills in full or could make only partial payments. Over the past year, 70% said they cut back on extras such as dining out or entertainment, and 54% said they were unable to save for the future.
Hardship varies sharply by income
Pew reported that 44% had difficulty paying for at least one basic necessity in the previous year. Twenty-eight percent had trouble paying for medical care for themselves or family members, while 20% said they got food from a food bank or pantry.
Among lower-income adults, 71% reported at least one hardship, compared with 39% of middle-income adults and 13% of upper-income adults. Of adults who had struggled with a necessity, 50% said they borrowed from friends or family and 31% used a payday or other short-term loan. The comparable figures among people without those hardships were 8% and 4%.
Childcare was another pressure point. Nineteen percent of parents of children under 18 said they had trouble paying for it at some point in the past year. The share was 30% among lower-income parents, 15% among middle-income parents and 6% among upper-income parents.
Worry coexists with optimism
Forty-one percent said they had little or no confidence they would have enough income for the life they wanted in the future, while 22% were very or extremely confident. Thirty percent said they often felt stuck when thinking about their finances. At the same time, 37% often felt hopeful and 36% felt content.
Daily or near-daily worries about retirement savings were reported by 37% of adults. Thirty-two percent said they worried that often about health-care costs, and the same share about debt; 30% cited paying bills. For lower-income adults, 49% worried daily or almost daily about bills, 43% about health-care costs and 41% about buying enough food.
The survey also found differences by party in reported financial stability. Republicans and Republican-leaning adults were more likely than Democrats and Democratic leaners to say they could pay all bills in full each month, 78% versus 69%, and had a three-month emergency fund, 51% versus 45%. Pew notes that age, income and other characteristics also vary across groups; the party comparison alone does not explain why respondents’ circumstances differ.
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