Having the proper safety nets in place to deal with hardship can be a vital aspect of an individual’s financial strategy. However, there may be a sizable portion of Americans who are not doing enough to make sure they are taken care of in case of hardship.
Nearly 60 percent of Americans noted that they would be able to last three months maximum if they were too sick or injured to work, according to a report from Cigna. Another 29 percent explained they would not hold out for more than one month.
“With young families and not as much time to build up savings they could access, younger workers might be at the most risk for significant financial impacts of being out of work or paying unanticipated medical bills because of an injury or illness,” said Mike Witwer, vice president for the voluntary benefits business at Cigna.
Close to 85 percent of consumers explained they worry monthly about their financial situation if they were to get sick or injured, the report explained. Another 30 percent noted that they are concerned about this more often.
Approximately 60 percent noted that if they were not working for one month straight, there would be a notable financial risk present, the report said. Close to three-quarters of those polled felt that their own personal savings was the best way to deal with having a lack of money. Despite this, another 53 percent felt they would need to consider taking money from a retirement savings plan.
More Americans get finances in order
While worries about medical issues preventing individuals from working may be an issue, there are still some Americans who are trying to ensure their finances are becoming more robust.
Only 36 percent of Americans noted that they are living paycheck to paycheck, according to a report from CareerBuilder. This was notably lower than in 2008 and 2010, when 46 percent and 40 percent said this, respectively.
Just 25 percent of consumers reported not saving any money during a given month, the survey found. This was slightly down from the 27 percent recorded in 2012. Still, close to one-third try to save at least $250, while one in 10 save more than $1,000 each month.
Overall, 82 percent of Americans were able to make their money last through each month in the past year, the report added. This is still higher than the 80 percent who said this last year.