The Safety Net: Americans have $500 in emergency savings 

The median emergency savings for Americans is $500. The size of the safety net varies by generation, with Boomers saving a median of $2,000 – five times that of Gen Z’s reserves of $400. One third of Americans (32%) don’t have an emergency savings fund and 29% say they can’t afford an unexpected expense over $400, according to new Empower research. 

Half of Americans admit they’re stressed about their current level of emergency savings (50%) and recognize the importance of a safety net. Some 75% of Americans agree emergency savings are essential for financial security and 64% say it’s a financial priority for them.  

Key takeaways

• 1 in 3 (32%) of Americans have no emergency savings set aside.
• 64% of Americans say building emergency savings is a top financial priority and one third (31%) have contributed to their emergency fund in the past month.
• Half of Americans admit they’re stressed about their current level of emergency savings (50%).
• 42% say their current savings wouldn’t help if they lost their job today.
• Half (48%) believe their emergency savings will grow in the next year.
• Over 1 in 2 (52%) regret not starting an emergency fund sooner.
• 39% say rising prices are the biggest roadblock to saving for a rainy day. 

Emergency savings are top of mind 

The majority of Americans (64%) say growing their emergency savings is a financial priority right now—even if they’re still finding their financial footing. So where do things stand?  

The median emergency savings balance for Americans:

• Overall: $500
• Gen Z: $400
• Millennials: $300
• Gen X: $500
• Boomers: $2,000

A third (30%) do not believe they could handle unexpected expenses that could arise in the year ahead. Close to 1 in 5 Americans say their savings would cover less than a month of expenses (18%). 

The majority (63%) say the rising cost of living has made it harder to build or maintain emergency savings, and 35% say the economy and tariffs have caused them to increase their contributions. More than half (58%) say saving for emergencies feels “almost impossible” with how expensive everything is right now. 

In the past year, many have faced unplanned financial events including:

• Car repairs (26%)
• Medical bills (24%)
• Home repairs (19%)
• Job loss or income reduction (14%)
• Pet emergency (11%) 

Nearly two-thirds (64%) of Americans say emergency savings are a financial priority for them in 2025. Some 17% contribute to their fund monthly as part of their budget, 31% say they’ve added to their savings in the past month. 

Stress meets strategy

Most take a “better safe than sorry” approach to emergency savings and want to put away as much as possible (39%), with half (52%) wishing they had started saving sooner. Close to 1 in 5 are more modest, saving up “just enough to sleep at night” (17%), while 13% are opportunity cost conscious – they balance emergency savings with other investments.   

But the study reveals awareness and momentum: Nearly half (48%) believe their emergency savings will grow over the next year:

• 20% add to their fund sporadically when they have extra money
• 12% have set up automatic monthly contributions 

What gets in the way? 

Nearly a quarter (23%) say they maintain the same emergency savings approach regardless of economic conditions, though Americans cite several common roadblocks to saving for a rainy day:  

• 39% say inflation and rising prices are the top barrier
• 35% point to high monthly expenses
• 32% say their income is too low or irregular
• 22% prioritize paying off debt first

Close to half (46%) say their emergency savings account has less money compared to a year ago and more than 2 in 5 (42%) say their savings wouldn’t help them if they lost their job today. Some 40% say they can count on their family to help if something goes wrong financially. 

Where do Americans keep their safety nets?

Around 37% of Americans store their emergency saving fund in a regular savings account. A quarter use a checking account (23%). Nearly 1 in 5 keep emergency cash at home (19%) —a figure that rises to 27% among Gen Z. 

Only 16% have set a specific goal of saving six months of expenses. But the lack of a precise number isn’t stopping people from trying. In fact, 41% don’t have a target at all—but they’re putting away money as they go. 

Generational check-in

• Gen Z: 25% say they don’t have emergency savings yet, but a notable 33% have worked with a financial professional to help them get started.
• Millennials: Nearly 3 in 10 have consulted an advisor about emergency savings, and they’re increasingly focused on building long-term security.
• Gen X: The most likely generation to say they couldn’t afford an unexpected $400 expense (35%).
• Boomers: Feel they could handle an emergency expense over $10,000. 

A roadmap for resilience

When asked what would make the biggest difference in their ability to save more, respondents pointed to:

• Higher income (48%)
• Lower monthly expenses (37%)
• Lower inflation or more stable prices (36%)
• Ability to pay off debt first (27%)
• Better tools and smarter automation (9%) 

Safety net snapshot

Americans are expecting the unexpected, and many are seeking advice: More than 1 in 4 people (26%) have worked with a financial professional to plan for emergencies, including 33% of Gen Zers and 29% of Millennials. 

Methodology:
Empower’s “The Safety Net” study is based on online survey responses from 2,202 Americans ages 18+ from June 3-5, 2025. The survey is weighted to be nationally representative of U.S. adults.