Half of American workers draining savings to cover basic needs

A new survey from Resume Now reveals that U.S. workers are experiencing severe and worsening financial pressure as wages fail to keep pace with rising costs of living. According to the 2026 Cost-of-Living Crunch Report, just 12% of workers say their pay has kept up with inflation, and only 17% say they can comfortably cover essentials and save.

Nearly everyone (92%) reported that they cut back on spending in 2025, including essentials such as groceries and healthcare. Notably, nearly 50% of respondents said they have dipped into savings just to get by.

“America is in a cost-of-living crisis, and workers know it,” says Keith Spencer, career expert at Resume Now. “Wages simply aren’t keeping pace. People are cutting groceries, skipping healthcare, delaying major life decisions and turning to outside help at record rates. These are survival strategies, not spending choices.”

See also: Employee financial anxiety hits new high heading into 2026

Essentials, not luxuries, are driving everyday strain. According to the survey, 65% of respondents said the cost of everyday necessities is their top financial stressor. Additional stressors included housing costs (43%), retirement savings (38%), healthcare costs (37%) and lack of emergency savings (37%).

Many households have very little financial cushion, and the majority of respondents said they would be able to cover expenses for only one to three months if they lost their job. With these growing costs and instability, Americans are turning to outside help at rising rates. The survey found that 46% of respondents rely on more family support, government aid or debt than last year.

Additionally, Americans are cutting back on everything from dining out (69%) and vacations (55%) to retirement contributions (29%) and healthcare visits or prescriptions (21%). And in order to survive, half of Americans say they have dipped into savings to survive. Other strategies to cope with rising costs included delaying major purchases or milestones (42%), picking up additional income (28%), taking on debt (24%) or borrowing from friends and family (22%).

Taken together, the survey highlights a workforce under strain, where financial trade-offs have become a daily reality rather than a temporary setback. As inflation continues to outpace wages, many Americans are left navigating an increasingly fragile financial footing.

This article was originally published on BenefitsPRO, a sister site of HR Executive. For more content like this delivered to your inbox, sign up for BenefitsPRO newsletters here.