Study: 40 percent of Ill. residents lack sufficient savings
(MCT) — More than 40 percent of Illinois residents lack adequate savings to cover basic expenses for three months if they suffer a loss of income, according to a new report from the Corporation for Enterprise Development.
Data released Wednesday by the advocate for low- and moderate-income households shows that 42 percent of Illinois residents live in "liquid asset poverty," meaning they don't have enough cash or other such quickly accessible assets as bank, investment and retirement accounts.
Besides Illinois residents living below the official income poverty line of $23,050 for a family of four, many who would consider themselves middle class are included.
More than a quarter of households being paid $57,841 to $88,980 a year have less than three months of savings, or nearly $5,800 to subsist at the poverty level for three months.
The 2013 Assets & Opportunity Scorecard ranked Illinois 33rd overall in the ability of residents to achieve financial security. The lower the overall score, the better the state's overall performance.
The scorecard evaluates states across 53 measures. Illinois got a "D" in housing and home ownership, for example, partly because of a relatively high foreclosure rate, and a "C" in business and jobs.
It did better in average annual pay and in private loans to small businesses.
Its recommendations to Illinois included: offering programs to transition low-income renters to homeowners and enacting foreclosure prevention and protection policies.