73M Americans Have Less Than One Week Worth Of Income Protection

An estimated 72.7 million American adults, or roughly 28.7% would survive just a week or less if they were to lose their job tomorrow.  This is alarming since according to investment firm Vanguard, Americans should have at least three to six months emergency living expenses saved up. An estimated 10.8 million (4.3%) have income protection. Approximately 186.7 million (73.5%) have enough to stay afloat for up to 6 months.

income protection

Leroy_Skalstad / Pixabay

We looked across generationally and found that Baby Boomers were most prepared in regards to income protection, with 6.8 million (7.5%) reporting protection for their total population vs GenXers 3.2 million (3.6%) and Millennials 1.7 million (2.3%).

You will find the full report showcasing data here: https://www.finder.com/living-paycheck-to-paycheck

Commenting on the alarming income protection findings, CEO of Finder U.S., Jon Brodsky, said:

“Losing your job might be a fleeting thought to some, especially if you have a significant amount of time invested in your current job or run your own business. Income volatility should not be taken lightly, especially if there is no protection in place which would make recovery more difficult should an issue arise.” 

“It might not be too surprising that Baby Boomers show to be the most prepared when it comes to income protection. Boomers have the advantage of time and other resources such as retirement savings not accessible to younger generations.” 

“If you want to be ready should the unexpected arise and you find yourself without regular income, set aside funds and look into income insurance protection options. Many income insurance policies provide 50-60% of an individual’s total income in monthly payments. Note that monthly benefits can cover common daily expenses including gas, food, medical bills, credit card debt and more. Note that the cost of income protection is dependent on gender, lifestyle, age and occupation and ranges between 1-3% of your income.”




About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver