Forty-two percent of workers are living paycheck to paycheck – another reason clients have to help employees wring maximum value from their compensation.
The new mark is down slightly from the 43% who were in this financial state in 2010, CareerBuilder found in a survey of 5,200 workers. This 42% level is at pre-recession levels, indicating that while incremental, household finances are improving.
Among those earning six figures, 14% say they are living paycheck to paycheck, down from 17% in 2010.
Twenty percent of all workers have missed payments on bills in the past year, down from 22% in 2010.
“A better employment picture in the U.S. has brought more steady incomes into households, and workers are paying much closer attention to spending decisions and savings,” says Rosemary Haefner, vice president of human resources at CareerBuilder. Seventy-two percent say they have become more fiscally responsible since the recession began.
However, some workers are using their savings to get by. Twenty-one percent have reduced their 401(k) contributions, 34% are not contributing to a retirement account at all. Even among those earning six figures, 17% have reduced their 401(k) contributions, and 9% are not contributing anything at all.
Lee Barney writes for Money Management Executive, a SourceMedia publication.
Register or login for access to this item and much more
All Employee Benefit Adviser content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access