According to CNBC’s Your Money Financial Confidence Survey, conducted in partnership with Momentive, one in five Americans say they need $1 million to feel “financially comfortable.”
The description “financially comfortable” is subjective and means different things to different people. Some may be thinking about current bills or debt they want to pay off, while others are focused on long-term expenses or retirement goals.
Here is the breakdown of the results, based on the amounts selected by the survey participants:
- $10,000: 8th%
- $25,000: 14%
- $100,000: 36%
- $500,000: 18%
- $1 million: 20%
- No Answer: 4%
Almost 75% of respondents say they need $100,000 or more to be financially comfortable, with 20% choosing $1 million. This majority is consistent across all income brackets, although respondents with a six-figure income are more likely to say they need $100,000 or more.
As part of the effort of National Financial Literacy Month, throughout the month CNBC will feature stories that help people manage, grow and protect their money so they can be truly ambitious.
There are increasing signs that Americans are struggling to keep up with the additional costs.
Credit card debt hit an all-time high in 2022, up 18.5% from a year earlier, according to a recent report by credit bureau TransUnion.
And more people say they have “somewhat” to “very difficult” to pay their usual bills in the last seven days, up 25% year-over-year, according to the Census Bureau’s latest Household Pulse Survey.
Financial vulnerability is also felt at all income levels: A majority of Americans earning less than $100,000 say they live paycheck to paycheck, while 32% of those earning more than six figures say the same Poll by CNBC and Momentive.
Additionally, 53% of survey respondents say they have no emergency savings. Of those who do, just over 1 in 4 have saved less than $5,000. That’s probably not enough money for most people, since certified financial planners generally recommend setting aside three to six months’ worth of expenses for emergencies.
The survey of 4,336 respondents was weighted for age, race, gender, education and geography using the Census Bureau’s American Community Survey to reflect the demographic makeup of the United States for persons 18 and older.
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