(NewsNation) — A new survey from retirement plan provider Empower reveals that a significant portion of Americans are unprepared for financial emergencies, with one-third of respondents lacking an emergency savings fund altogether. The survey also found that 29% of Americans could not afford an unexpected expense of $400 or more.
Key Findings from the Survey
The median emergency savings for Americans stands at just $500, far below what financial experts recommend for unforeseen expenses. The survey highlights that many people struggle to save for emergencies due to financial pressures, particularly the rising cost of living.
- 63% of Respondents said the increasing cost of living has made it harder to build and maintain emergency savings.
- 58% of Respondents described saving for emergencies as “almost impossible” in the current economic climate.
- 50% of Americans expressed stress over their current emergency savings, with 42% saying their savings wouldn’t cover them if they lost their job.
Economic Pressures Contributing to Financial Strain
The survey points to several factors making it challenging for Americans to save, including inflation, job market uncertainties, and rising artificial intelligence automation. The new tariffs introduced this year by the Trump administration have added further economic uncertainty.
Given the concerns about job security, many respondents feel their emergency savings would not provide adequate support if they were to lose their jobs. This fear is growing as many Americans feel that the labor market is sluggish, further compounded by technological changes.
Methodology
The Empower study was conducted with an online survey of 2,202 Americans aged 18 and over, administered between June 3 and 5, 2025.
Closing Line
This story may be updated with more information as it becomes available.
