While polls have repeatedly showed middle- and lower-income Americans concerned about their financial futures, a new survey indicates that even those making a lot of money are anxious.
According to a just-released survey by the Federal Reserve Bank of Philadelphia, nearly a third of respondents earning between $100,000 and $149,000 said, in thinking about the economy for the rest of the year, that they were very concerned about “making ends meet.”
That figure is up from just over 21% who expressed similar concerns earlier this year.
An equally strong 32.5% of those making more than $150,000 annually also voiced concerns about their financial security. In 2023, only 21.7% in this category expressed worries.
The Federal Reserve Bank of Philadelphia’s Labor, Income, Finances, and Expectations survey additionally showed, perhaps ironically, that among the various income levels, “most of the increase in concern about making ends meet came among those who can currently pay all of their bills.”
Among all respondents to what is known as the LIFE survey, respondents since early 2023 have remained “generally optimistic about their income prospects, with net positive values in all demographic segments,” noted a narrative accompanying the survey.
But optimism appeared an elusive thing in the most recent LIFE survey, with the largest decline in good feelings seen among those who are “older, lower-earning, female, or non-White.”
What is described as an “observable decrease in optimism” appears to be largely driven by a decline in the percentage of people “expecting higher incomes,” along with a rise in those anticipating a decrease in wages.
Meanwhile, the percentage of respondents who expected their incomes to remain the same from year to year has been static, with 41% earlier this year and 41% this spring counted in that group.
Finally, in asking about the type and nature of financial disruptions challenging the respondents, just under 22% pointed to nonmedical expenses, followed by 16.7% who blamed housing costs increases; and 13.1% who referenced what they listed as “significant healthcare expenses.”
The LIFE survey is put together by the Federal Reserve’s Finance Institute, with the stated goal of obtaining insights that “contribute to a healthy consumer sector, a stable financial system, and a resilient regional and national economy.”
By Garry Boulard
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