As inflation continues to strain American households, even those earning six figures are now feeling the heat. According to a recent survey by the Federal Reserve Bank of New York, 14% of consumers expect to miss their minimum debt payments in the coming three months—a sharp jump from previous months. Notably, households earning at least $100,000 are reporting an increased likelihood of missing payments, a level of financial anxiety not seen in over a decade. For many, the combination of stagnant wages and rising costs is pushing them closer to the edge.
A LendingTree survey echoes these alarming trends, revealing that 76% of Americans say inflation and the current economy are making it harder to pay their bills. This burden is causing significant strain on families across income brackets, with 40% of respondents stating they are less able to afford their monthly bills compared to just a year ago. Utilities, rent, and internet bills are among the hardest hit, with 45% of Americans admitting to paying a bill late in the last year. And it’s not just a matter of forgetfulness—55% of those who missed payments simply couldn’t afford them.
Retirement is also increasingly out of reach for many. A recent model by Morningstar’s Center for Retirement and Policy Studies found that 45% of Americans retiring at 65 are at risk of running out of money. The situation is particularly dire for single women, with a 55% chance of depleting their savings, compared to 40% for men. Even those who believe they are financially prepared may be in for a rude awakening, as rising healthcare costs and other financial pressures threaten the security of their golden years.
Sources:
www.lendingtree.com/debt-consolidation/affording-bills-survey/
www.businessinsider.com/retirement-saving-why-half-retirees-could-run-out-of-money-2024-9