A new study conducted by Bader Law has revealed how fragile the financial safety net is for American workers. The findings show that a combination of rising living costs, inadequate savings, and slow-moving benefits systems leaves millions unable to withstand even short-term income loss.
Living Paycheck to Paycheck
The study found that 57% of workers live paycheck to paycheck. While the average U.S. salary is $63,795, that figure masks the reality of high expenses and low savings.
- 46% of adults have enough savings for three months of expenses.
- 30% have some savings but not enough.
- 24% have none at all.
In the past year, 37% of adults dipped into emergency funds, with most withdrawals going toward essentials like food, rent, and utilities.
The Cost-of-Living Crisis
The study highlights how rising costs erode financial stability. Nationally, rent for a two-bedroom apartment averages $1,154, with utilities adding $583. Combined with groceries, monthly costs exceed $2,000.
In Georgia, the burden is heavier:
- Rent: $1,545 per month, rising 9% annually.
- Healthcare: $413 per month.
- Total monthly expenses: $3,400+.
For minimum-wage workers, this creates a 14% income gap, even with full-time employment.
SSDI: A Broken Lifeline
The study also examined Social Security Disability Insurance (SSDI), which is supposed to support workers sidelined by injury or illness. Instead, it often fails:
- 65–70% of initial applications are denied.
- 43% of denials are for technical reasons like incomplete paperwork.
- Average processing time: 225 days.
- Appeals: often over a year.
This means that even workers who qualify for benefits face months without income, forcing many into debt or bankruptcy.
Georgia’s Unique Struggles
The study highlights Georgia as a state where workers are especially vulnerable:
- Rent is nearly $400 above the national average.
- Wages are below the U.S. average.
- The state ranks 33rd in affordability.
With a high concentration of physically demanding jobs, Georgians face elevated risks of injury — and fewer resources to recover financially.
The Human Toll
The study emphasizes that the consequences are not just financial but deeply personal. Families forced to drain savings or wait months for benefits often face cascading hardships:
- Missed rent or mortgage payments.
- Mounting medical debt.
- Food insecurity.
- Long-term credit damage.
A Call for Reform
The findings suggest that without reforms — including faster SSDI processing, stronger wage protections, and expanded access to affordable housing — millions of Americans will remain one accident away from financial collapse.
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