While financial experts typically recommend keeping three to six months of expenses saved for emergencies, the reality is that a large segment of the population, including Baby Boomers, don’t have nearly that much saved, according to a new Bankrate survey.
By the numbers: Among all age groups, 24 percent of Americans say they have no emergency savings. The numbers for older Americans are slightly better.
The bottom line: The survey finds that 41 percent of Americans between the ages of 61 and 79 have six months of emergency savings; 22 percent have enough to cover three to five months of expenses; and 20 percent less than three months. Sixteen percent said they had no emergency savings.
More than half (54 percent) of U.S. adults said inflation is causing them to save less for emergencies. Other reasons they’re saving less include changing income/unemployment (26 percent) and recent interest rate cuts (17 percent).
