Finance

Nearly 60% of Americans say $100K income required to curb expenses anxiety

Published

9 months ago

September 24, 2024

Storch Advisors CEO Gerald Storch discusses the state of the American consumer ahead of the holidays on ‘Varney & Co.’

With Americans still feeling the pinch of higher prices, many believe they would have to take home at least $100,000 a year to not fret about everyday living expenses, newly-released data showed.

Edelman Financial Engines on Monday said 58% of Americans said their concerns about day-to-day expenses would be lessened if they received that level of yearly income.

Higher percentages of Americans in their 30s and 40s said they had to make at least $100,000 compared to older age groups, the company found. For those in their 30s, the share was 71%, while 75% in their 40s cited that figure.

woman counting money at modern office (iStock / iStock)

Those findings were part of the company’s latest “Everyday Wealth in America” study that surveyed 3,000 Americans 30 years or older, including 1,500 “affluent” individuals aged 45-70, online between June 12-July 3.

INFLATION RISES 2.5% IN AUGUST, LESS THAN EXPECTED

Meanwhile, for one-fourth of all Americans, $200,000 was the yearly salary necessary to banish stress about everyday expenses, Edelman Financial Engines reported.

A couple reviews their finances at home. (iStock / iStock)

The data comes as Americans have been contending with high inflation and costs of living for quite some time.

In August, inflation measured by the Consumer Price Index went up 0.2% month-over-month and 2.5% year-over-year in August, which the Bureau of Labor Statistics called the “smallest 12-month increase since February 2021,” FOX Business previously reported.

The costs of food and shelter have been pain points for U.S. consumers. The prices for food in August remained 2.1% higher than a year ago, while shelter was up 5.2% in the same time frame, according to the CPI.

Edelman Financial Engines’ wide-ranging study also showed just 12% of Americans view themselves as wealthy.

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Nearly two-thirds of Americans that don’t put themselves within that category indicated that having $1 million would make them feel wealthy, according to the data.

About 44% of Americans “see credit cards (versus other types of debt) as the biggest threat to their ability to build wealth,” per the study.

Edelman Financial Engines’ Amin Dabit said in a statement accompanying the newly-released study that Americans “aren’t feeling overly confident about the state of their finances.”

Woman looking at paper bill and counting expenses, Planning budget and home finance management (Lazy_Bear/iStock / Getty Images)

“Part of these worries stem from external pressures, like inflation or a turbulent election economy, while some are individual pressures, such as family responsibilities and mounting credit card debt,” he said. “Through this research, we’re learning more about how these different factors all come together to impact the way Americans perceive and achieve their wealth.”

COST-OF-LIVING CRISIS KICKS OFF THE HARRIS, TRUMP DEBATE

Overall, the economy and personal finances were major drivers of anxiety for Americans, with 49% calling the former their “biggest source” and 48% saying the latter, Edelman Financial Engines found. About 37% said politics.

Building emergency savings, growing wealth and saving for retirement were among the “top 3” financial goals reported by Americans this year.

Eric Revell contributed to this report.

Finance

Stocks making the biggest moves midday: WOOF, TSLA, CRCL, LULU

Published

1 day ago

June 6, 2025

Business Finance News

Finance

Swiss government proposes tough new capital rules in major blow to UBS

Published

1 day ago

June 6, 2025

Business Finance News

A sign in German that reads “part of the UBS group” in Basel on May 5, 2025.

Fabrice Coffrini | AFP | Getty Images

The Swiss government on Friday proposed strict new capital rules that would require banking giant UBS to hold an additional $26 billion in core capital, following its 2023 takeover of stricken rival Credit Suisse.

The measures would also mean that UBS will need to fully capitalize its foreign units and carry out fewer share buybacks.

“The rise in the going-concern requirement needs to be met with up to USD 26 billion of CET1 capital, to allow the AT1 bond holdings to be reduced by around USD 8 billion,” the government said in a Friday statement, referring to UBS’ holding of Additional Tier 1 (AT1) bonds.

The Swiss National Bank said it supported the measures from the government as they will “significantly strengthen” UBS’ resilience.

“As well as reducing the likelihood of a large systemically important bank such as UBS getting into financial distress, this measure also increases a bank’s room for manoeuvre to stabilise itself in a crisis through its own efforts. This makes it less likely that UBS has to be bailed out by the government in the event of a crisis,” SNB said in a Friday statement.

‘Too big to fail’

UBS has been battling the specter of tighter capital rules since acquiring the country’s second-largest bank at a cut-price following years of strategic errors, mismanagement and scandals at Credit Suisse.

The shock demise of the banking giant also brought Swiss financial regulator FINMA under fire for its perceived scarce supervision of the bank and the ultimate timing of its intervention.

Swiss regulators argue that UBS must have stronger capital requirements to safeguard the national economy and financial system, given the bank’s balance topped $1.7 trillion in 2023, roughly double the projected Swiss economic output of last year. UBS insists it is not “too big to fail” and that the additional capital requirements — set to drain its cash liquidity — will impact the bank’s competitiveness.

At the heart of the standoff are pressing concerns over UBS’ ability to buffer any prospective losses at its foreign units, where it has, until now, had the duty to back 60% of capital with capital at the parent bank.

Higher capital requirements can whittle down a bank’s balance sheet and credit supply by bolstering a lender’s funding costs and choking off their willingness to lend — as well as waning their appetite for risk. For shareholders, of note will be the potential impact on discretionary funds available for distribution, including dividends, share buybacks and bonus payments.

“While winding down Credit Suisse’s legacy businesses should free up capital and reduce costs for UBS, much of these gains could be absorbed by stricter regulatory demands,” Johann Scholtz, senior equity analyst at Morningstar, said in a note preceding the FINMA announcement.

“Such measures may place UBS’s capital requirements well above those faced by rivals in the United States, putting pressure on returns and reducing prospects for narrowing its long-term valuation gap. Even its long-standing premium rating relative to the European banking sector has recently evaporated.”