WASHINGTON — Although a new Federal Reserve Board study shows that many Americans have recovered from the "Great Recession," a significant number of consumers are still struggling.
The Fed's Report on the Economic Well-Being of U.S. Households provides a snapshot of the self-perceived financial and economic well-being of U.S. households and the issues they face, based on responses to the board's 2013 Survey of Household Economics and Decisionmaking.
The study showed that as of September more than 60% of respondents said that their families were either "doing OK" or "living comfortably" financially.
But one-fourth said that they were "just getting by," and another 13% said that they were struggling to do so.
Thirty-four percent of households said that they were somewhat worse off or much worse off financially than they had been five years earlier in 2008, and 34% said that they were about the same.
What is helping to improve consumer optimism about the future of the economy and their own balance sheets is a more positive outlook on the housing market.
Many homeowners said that they expect house prices in their neighborhoods to increase over the 12 months following the survey, with 26% expecting an increase in values of 5% or less and 14% expecting an increase in values of greater than 5%.
Less than 10% of homeowners said that they house prices in their neighborhoods to decline over the 12 months following the survey.
The effects of financial institutions tightening credit are still being felt by many Americans.
The availability of credit was perceived to be relatively low by some respondents, with 31% having applied for some type of credit in the prior 12 months and one-third being turned down or given less credit for which they applied.
Also, 19% of respondents said that they put off applying for some type of credit because they thought they would be turned down.
Just over half of respondents said that they are confident in their ability to obtain a mortgage, were they to apply.
Other study findings:
- Education debt of some kind is held by 24% of the population, with 16% having acquired debt for their own education, 7% for their spouse/partner's education and 6% for their child's education.
- The survey showed what the recession made very clear: Many households aren't adequately prepared for retirement. Thirty-one percent of non-retired respondents said that they have no retirement savings or pension, including 19% of those 55 to 64.
- The "Great Recession" pushed back the planned date of retirement for two-fifths of those 45 and over who hadn't yet retired, and 15% of those who had retired since 2008 reported that they retired earlier than planned due to the recession.
