Survey: More workers now living paycheck to paycheck
(MIAMI HERALD) Counting down the hours until payday? You’re not alone. As the economic downturn trudges on, many workers are struggling with household budgets. Six in 10 (61 percent) workers report they always or usually live paycheck to paycheck just to make ends meet, up from 49 percent last year and 43 percent in 2007. This is according to a new nationwide survey of more than 4,400 workers by CareerBuilder. Three in 10 (30 percent) workers with salaries of $100,000 or more report that they, too, live paycheck to paycheck, up from 21 percent in 2008.
Some workers are making ends meet by dipping into their long-term savings. More than one in five (21 percent) say they have reduced their 401(k) contributions or personal savings in the last six months to get by. Looking at workers earning six figures or more, a nearly equal number (23 percent) report that they have also reduced their 401(k) or savings.
While some workers are tapping into their long-term accounts, others are having a hard time saving anything at all. More than one-third (36 percent) of workers say they do not participate in any programs such as 401(k), IRAs or retirement plans, up from 31 percent in 2008. In addition, one-third (33 percent) report that they don’t put any money aside into their savings each month, up from 25 percent in 2008, while 30 percent set aside $100 or less per month for savings and 16 percent save less than $50.