Board of Governors of the Federal Reserve System

Selected Findings from the 

Survey of Household Economics and Decisionmaking

Jeff Larrimore

Division of Consumer & Community Affairs

Federal Reserve Board

The analysis and conclusions set forth in this presentation are my own do not indicate concurrence of the 

Federal Reserve Board, the Federal Reserve Banks, or their staff. 1 
Board of Governors of the Federal Reserve System 2

Full report available at federalreserve.gov 
Board of Governors of the Federal Reserve System

Major survey topics

• Household Economic Well-Being

• Housing and Living Arrangements

• Credit Behavior and Access to credit

• Savings

• Education, Student Loans, and Job Readiness

• Retirement Planning and Saving

• Health Care Expenses

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Board of Governors of the Federal Reserve System

Household Economic Well-Being

4

Which one of the following best describes how well you are managing financially 

these days?

Asked of all respondents. n = 4,134
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Household Economic Well-Being

Of those whose income is below 

what they consider normal:

• Only 20% expected it to 

increase in the next 12 

months

• 28% expected their income 

in the next year to decline

5

Was your total household income in 2012 higher or 

lower compared to what you would expect in a 

normal year?

% N

Low 30 1,143

Normal 60 2,598

High 7 300

Asked of all respondents. n = 4,134
Board of Governors of the Federal Reserve System

Saving

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Board of Governors of the Federal Reserve System

If you were to lose your main source of income (e.g. job, government 

benefits), could you cover your expenses for 3 months by borrowing money, 

using savings, selling assets, or borrowing from friends/family?

Those responding “Yes”

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Board of Governors of the Federal Reserve System

Ability to cover $400 expense

8

Asked of all respondents. n = 4,134

Suppose that you have an emergency expense that costs $400. Based on your current financial 

situation how would you pay for this expense? 

Among the 33% of respondents who could pay but

would use some form of debt or sell something

(respondents can choose multiple options) %

Credit card – paid off over time 49

Borrow from friends or family 27

Sell something 20

Use a bank loan 9

Use a payday loan 8

Other 6

Use cash or credit card paid in full (in combination 

with one or more forms of debt or sales) 27
Board of Governors of the Federal Reserve System 9

Percent able to cover $400 emergency 

expense without borrowing
Board of Governors of the Federal Reserve System 10

In 2012, about how much of your income did your household set aside as savings 

as a percent of your total gross household income (before taxes and deductions)? 
Board of Governors of the Federal Reserve System

Retirement Planning

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Retirement planning by age

12

Asked of those not currently retired. n=3,163

How much thought have you given to the 

financial planning for your retirement? 
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Among those not currently retired and age 30 or older. n=2,429

Retirement planning by income

(among those age 30 and older and not retired)

How much thought have you given to the 

financial planning for your retirement? 
Board of Governors of the Federal Reserve System

Have no retirement savings or pension 

besides Social Security

(among those age 30 and older and not retired)

14

Among those not currently retired and age 30 or older. n=2,442
Board of Governors of the Federal Reserve System

Retirement plan

(among those age 30 and older and not retired)

15

Which one of the following best describes your 

plan for retirement?

Under 

$25,000

$25,000 to 

$50,000

$50,000 to 

$75,000

$75,000 to 

$100,000

Over 

$100,000

I do not plan to retire 10 7 7 4 4

Work fewer hours as I get close to retirement 8 7 8 12 8

Retire from my current career, but then find a different 

full-time job 3 3 4 3 4

Retire from my current career, but then find a different 

part-time job 8 15 18 25 20

Retire from my current career, but then work for myself 9 8 8 13 11

Work full time until I retire, then stop working altogether 12 18 25 23 33

Keep working as long as possible 31 31 22 16 13

Other 19 10 8 4 5

Among those age 30 and older not currently retired who have given at least “some” thought to retirement. n=1,521
Board of Governors of the Federal Reserve System

Not Just Lack of Retirement Savings

Of those who report no retirement savings or 

pension:

– 67% also said they didn’t regularly put money into 

savings account (vs. 47% overall)

– 86% didn’t have 3 months’ rainy-day funds 

(vs. 58% overall)

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Board of Governors of the Federal Reserve System

Overall Financial Challenges

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Board of Governors of the Federal Reserve System

Self-described financial challenges

“In a sentence or two, please describe the main 

financial challenges or concerns facing you or 

your family?”

• 1,616 respondents indicated that they 

currently had none

• 2,265 provided a written response

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Main challenges of those making over $50,000

Main challenges of those making under $50,000