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📂 Category: Budgeting & Savings,Personal Finance
✅ Main takeaway:
Key takeaways
- On average, American workers say they would need an additional $70,000 in household income each year to feel financially stable, according to a report from insurance company Aflac.
- Families with incomes of less than $50,000 annually need an additional $48,834 on average in annual income, while those earning more than $100,000 would like an additional $86,518.
- Many workers reported high levels of anxiety about health care costs, and nearly half (44%) were unable to cover $1,000 in health care expenses out of pocket.
Many Americans do not feel financially secure. In some ways, this is not surprising: rising costs of living and anxiety about health care expenses contribute to feelings of instability and uncertainty. But what is surprising is who says he needs the most money to feel secure, and what amount he is looking for on average.
How much more do Americans need to feel safe?
A report by insurance company Aflac found that workers said, on average, they needed an additional $70,000 a year in household income to feel financially secure. However, there was a difference of nearly $40,000 between what low-income families reported needing, compared to high-income families. It was not low-income families who wanted the most.
| Average Difference: Current versus desired salary by household income for American workers | |
|---|---|
| Average difference | |
| All employees | $69,943 |
| $49,999 or less | $48,834 |
| $50,000 – $99,999 | $53,279 |
| $100,000 or more | $86,518 |
Low-income households, on average, wanted a raise of $48,834, more than $20,000 less than the average. By contrast, the highest-income households wanted an average raise of $86,518, nearly $17,000 more than the average. According to this study, as your household income increases, the amount you need to feel financially stable also increases.
Health care costs, in particular, leave many workers feeling stressed. The data in the Aflac report shows:
- Nearly half of workers (44%) cannot cover a $1,000 health cost out of pocket.
- Nearly 1 in 5 (19%) of workers cannot pay $500 in health expenses out of pocket.
- Only a quarter of workers (26%) have the money to cover a large health care bill of $5,000 or more.
important
More than half of employees worry about medical costs that their insurance doesn’t cover.
Younger workers, in particular, are concerned about health care costs: 61% of Generation Z workers (born between 1997 and 2012) reported “high” levels of concern about uncovered expenses. In addition, 52% of Millennials (born between 1981 and 1996), 50% of Generation
Salary versus benefits
Given their growing concerns about health care expenses, a higher salary isn’t the only thing American workers are looking for when considering their job options. For many, the benefits and flexibility also add to a sense of security and stability.
After salary, the top five considerations workers consider on the job are:
- Health benefits
- Work-life balance
- High job security
- Paid leave
- Flexible schedule
Bottom line
Many American workers feel financially insecure, reporting high levels of anxiety about costs such as uncovered health care expenses. Many of them want to have a higher family income; On average, workers say they need an extra $70,000 a year to feel financially stable. After salary, the most important thing American workers look for when considering employment options is health care benefits.
This feeling of needing more income exists across income groups. No matter how much workers earn, they feel overwhelmed by daily expenses and are especially concerned about unexpected costs.
⚡ What do you think?
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