Why are so many households unable to cover a $400 unexpected expense?

Chen, Anqi. “Why are so many households unable to cover a $400 unexpected expense?”. Issue in Brief 19-11, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, July 2019. http://hdl.handle.net/2345/bc-ir:108619.
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Abstract

The brief's key findings are: (1) About 40 percent of households, spanning the income spectrum, say that they couldn't cover a $400 unexpected expense. (2) In fact, some of these households actually do have enough to cover this modest expense, but they feel constrained by credit card debt. (3) Overall, the analysis finds that the vulnerable households fall into two main groups: (3a) those with low incomes, low educational levels, and/or a job loss; and (3b) those with moderate to high incomes but with substantial debt, such as credit card balances, mortgages, and/or student loans. (4) This widespread lack of precautionary savings is likely one reason why many households have trouble saving for retirement.

Title
Why are so many households unable to cover a $400 unexpected expense?
Author
Chen, Anqi
Center
Center for Retirement Research
Genre
report
Date Issued
July 2019
Publisher
Center for Retirement Research at Boston College
Series Title
Issue in Brief
Series Number
19-11
Persistent Link
http://hdl.handle.net/2345/bc-ir:108619
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing Retirement

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