Skip to main content

Survey: 30 Percent Within Three Paychecks of Needing to Borrow Money

Phil Hall
Jun 12, 2019
Photo credit: Getty Images/charnsitr

Nearly one-third of adults are within three paychecks of either needing to borrow money or skip paying their bills just to stay financially afloat, according to the 2019 Planning & Progress Study released today by Northwestern Mutual.
The new study also found 22 percent of adults have less than $5,000 saved for retirement and 15 percent have no retirement funds stashed away. Fifty-six percent of adults stated they did not know how much they will need to retire comfortably, with 22 percent of non-retired adults predicting Social Security will not be available when they retire. Forty-five percent of adults believed there was a chance they will outlive their savings and 41 percent admitted they have not taken any steps to address that possibility.
Furthermore, 46 percent expected to work past the traditional retirement age of 65. However, 53 percent stated they would past age 65 by choice, compared to 47 percent who say it will be out of necessity.
"People are skating on some very thin ice financially," says Emily Holbrook, senior director of planning at Northwestern Mutual. "Given what we know about savings levels, the number of people who can afford to retire at 65 is low. At the same time, people across the country are changing what the face of retirement looks like and getting satisfaction well beyond their bank accounts by continuing to work. The combination of those factors–affordability and lifestyle–form the bedrock of a good financial plan."
The 2019 Planning & Progress Study was conducted by The Harris Poll on behalf of Northwestern Mutual and included 2,003 American adults aged 18 or older in the general population.

Jun 12, 2019
DOJ: Lakeland Bank To Spend $13M To Settle 'Redlining' Claims

Agreement with N.J. bank is the third-largest redlining settlement in Justice Department history.

Industry News
Sep 29, 2022
Angel Oak Layoffs Add To Growing List Of Non-QM Cuts

About 20% of its staff, or 75 people, were affected.

Industry News
Sep 28, 2022
Redwood Trust Names New Chief Investment Officer

Also announces planned CoreVest leadership transition to be completed on 3rd anniversary of acquisition

Industry News
Sep 27, 2022
Fannie Mae Pilot Program Seeks To Help Improve Renters' Credit

Renters, including historically underserved groups, will benefit from paying on time each month.

Industry News
Sep 27, 2022
Suffolk County Data Breach Puts Contracts On Back Burner

Cyberattack beginning Sept. 8 prevents title services from closing loans.

Sep 27, 2022
Nations Lending Opens Another Branch In Arizona

New Scottsdale branch welcomes Arizona native Christine McConnell as lead personal mortgage advisor.

Industry News
Sep 26, 2022