How Much Do Americans Need To Feel Financially Secure?

A recent report has found that Americans need a significantly higher income to feel financially secure in this economy. According to WSL Strategic Retail, almost 30 percent of Americans with incomes between $100,000 and $150,000 say they struggle to cover their basic expenses, afford a few extras and still have enough for savings.

A recent report has found that Americans need a significantly higher income to feel financially secure in this economy. According to WSL Strategic Retail, almost 30 percent of Americans with incomes between $100,000 and $150,000 say they struggle to cover their basic expenses, afford a few extras and still have enough for savings.

To put things in perspective, the median American household income in 2010 was $49,445. But according to WSL’s ‘How America Shops’ survey, 52 percent of respondents say they are struggling to afford to pay for their basic needs, while 10 percent say they sometimes were not even able to afford the staples.

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WSL President Candace Corlett said:

[quote] The youth market, which has traditionally been known for its enthusiastic spending of discretionary income, has virtually dried up. [/quote]

Instead, Corlett said people aged 18 to 34 struggle to find employment and pay down student loan debt, with the Millennial demographic representing the largest percentage of Americans who are challenged to afford even basic necessities.

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Highlighting the challenges for retailers, WSL CEO Wendy Leibmann cautioned:

[quote] There is a huge fundamental issue when more than half of Americans can only afford basic necessities and people who earn up to $150,000 think they are poor. Look, American shoppers are moving on and coming back to shopping, but at their own pace. As a result, retail sales are precarious and likely to fluctuate up one month, down the next. That’s not going to change any time soon. Brands and retailers cannot ignore this. They will need to re-​think the way they do business over the next three to five years — or longer. [/quote]

The survey also found that shoppers are now more value conscious: 75 percent of female respondents say it is important to get the lowest price on everything they buy, up 12 percentage points from 2008. In this group, 68 percent are using coupons regularly and 45 percent are only buying items on sale.

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