Coronavirus: 60% Americans can last up to 3 months on savings as unemployment surges, says survey
The situation in the US is worsening with the spread of the COVID-19 pandemic and besides the soaring cases of infection and death, the economy too looks down so much so that people are considering selling blood or sperm once they run out of their savings. According to a new survey, 60 percent of Americans think they would last three months or less with their savings if they lose their jobs.
Careers website Zety came up with a survey which said while 24 percent of the people think they can last one to three months, 15 percent can go on for a month, nine percent for one or two weeks and 12 percent less than a week. Gender-wise, men can survive seven months while women can for only five-and-half months.
The US has seen nearly 17 million jobs vanishing in thin air in just three weeks as the pandemic has caused vast economic shutdowns across the nation. Over six and half million workers applied for unemployment benefits last week, adding to the 10-million plus workforce in the two weeks before that. The situation looks to plummet further as the fast spread of the pandemic compels the authorities to continue with the lockdown. The US has now over 465,000 people affected with the virus-- the most in any country in the world. Over 16,000 people have died which now leaves America with the second-highest death toll, surpassing Spain (over 15,000) and behind Italy (over 18,000).
Financial expert Suze Orman said in June 2018 that people needed to have savings of at least eight months to one year not six or three months. The Zety survey of over 1,000 people showed only a quarter of the country could manage one to three months sans income.
It also pointed out the fact that millennials (born between 1981 and 1997) were more accurate about their monthly costs. They were $14 shy of accuracy while Generation X (1965-1980) was off by $225 and Baby Boomers (1946-1964) by $358.
Baby Boomers can last the most time, says survey
But the Baby Boomers were better off when it came to living off the current savings - 6.7 months. Generation X has more savings against the Baby Boomers ($12,523 to $11,758) but they could last less (6.4 months). The Millenials have the least savings ($10,341) and could last only six months.
All the three generations were found to be spending the most on rent or mortgage with Generation X paying the most ($1,067) and Baby Boomers the least ($903). Generation X was also found to be the only category that spent more than what they earned. Women also found to be spending more than their earnings (113 percent) while for men, it is 85 percent, the survey said.
On items people would sell to earn extra money, quite a substantial number of men (35 percent) and women (36 percent) thought of selling their blood plasma while 22 percent of men thought of selling sperm and 13 percent of women their eggs.