NEW YORK (6/24/15)--Nearly one-third of all Americans have no financial back-up plan, a recent survey by Bankrate.com has found.
When asked about emergency savings, 29% of respondents said they had none, the highest level in five years and a step up from the 26% seen last year.
Further, 21% of respondents said they had some savings, but not enough to cover three months of expenses, while only 22% said they had enough saved to cover six months of expenses.
Personal finance experts say for consumers to be adequately prepared for a crisis they should have six months of expenses saved, according to Bankrate's Financial Security Index.
“These results are further evidence that Americans remain woefully undersaved for unplanned expenses,” said Greg McBride, Bankrate chief financial analyst. “And rather than progressing, (Americans) are moving in the wrong direction.”
The survey also found that those over the age of 50 are the most likely to have saved at least six months, as they have had more time to save.
Though, those under the age of 30 were the most likely to have enough to cover three to five months of expenses.
Trends appear to follow income and education levels.
The survey found that 53% of those making less than $30,000 annually had no emergency savings, nearly twice the number of those making between $30,000 and $49,999, and more than three times the number of those making between $50,000 and $74,999.
Those with college degrees were more than twice as likely to have saved six months of expenses as those with a high school degree or less.