Benefits August 27, 2009

For Many, Rainy Day Funds Would Run Dry Quickly

August 27, 2009 (PLANSPONSOR.com) - If they were to be laid off, more than a third (34%) of those participating in a recent poll said their rainy day fund would last a week or less.
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According to a Monster.com news release about its recent survey, only 20% of respondents indicated they could live on funds in their nest egg for six months. The job Web site noted that most financial advisers recommend having six months worth of savings in case of emergency.

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Other responses to a question about the size of respondents’ emergency savings (without employer severance) included:

  • 2-4 Weeks: 16%
  • 1-2 Months: 16%
  • 3-5 Months: 14%

Over a one week period beginning July 6 and running through July 13, more than 16,000 Web site visitors participated in the poll.

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