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CCH® HR MANAGEMENT — 10/09/06

Two-thirds of Americans live paycheck to paycheck

About 65 percent of Americans are dependent on their next paycheck to meet current living expenses, according to a recent survey conducted by the American Payroll Association (APA), a nonprofit association for payroll professionals.

The majority of workers in the U.S. would be hard-pressed to meet their financial obligations if their next paycheck were delayed for just a week, according to results from the APA's 2006 "Getting Paid In America" online survey. Moreover, 81 percent of survey respondents said the raises they receive each year aren't enough to cover the increasing cost of living.

Also telling, the survey asked employees what they would do with the extra money if they received a 100 percent pay raise. More than 47 percent said they would pay off debt. Only 1.25 percent said they would spend it on personal luxury items or vacations. The remaining respondents would deposit the surplus into savings, invest it, or contribute it to their retirement plans.

Despite the financial strain, however, 54 percent of those surveyed said that healthcare benefits mattered more to them than higher wages.

The survey was held in conjunction with the APA's annual public awareness campaign, National Payroll Week (NPW). More than 33,000 employees participated.

For additional information on this and other HR topics, consult CCH Human Resources Management or Personnel Practices/Communications.

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