A Record 26% of Americans Now Spend More Than They Earn, FINRA’s Latest Study Finds
Nobody decides to overspend. Rising bills and a flat paycheck quietly do it for them, and savings or a credit card fill the hole. Here is how a small monthly gap can shrink a retirement nest egg by years.
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Most people who overspend never actually decide to do it, it just happens slowly. Groceries cost a little more than they did last year, and car insurance renewals come in a little higher. A few other bills creep up at the same time, while the paycheck or Social Security deposit stays right where it was.
That gap gets covered quietly, usually from savings or a credit card, and it rarely feels like a decision at all. It’s also the pattern behind a striking finding from the FINRA Foundation’s National Financial Capability Study: a record share of Americans now spend more than they earn.
A Record Share of Americans Are Falling Behind Each Month
In the study’s 2024 wave, 26% of respondents said they spend more than their income. That’s up from 19% in 2021 and the highest the study has ever recorded. Over the same period, the share who spend less than they earn fell from 43% to 38%. Fewer people are adding to savings, and more are taking from it.
The survey’s scale gives these shifts weight, since FINRA surveys roughly 500 respondents in every state plus Washington, D.C. The spending shares had barely moved from 2009 to 2021, which makes the 2024 jump stand out. The squeeze also reached people with solid incomes. Among households earning $75,000 or more, the share who said paying bills wasn’t difficult at all dropped from 74% to 63%. Rising costs affected higher earners too.
The pressure didn’t stop in 2024, either. The Bureau of Economic Analysis tracks the saving rate. It slipped to 4.1% in the third quarter of 2026, down from 6.9% in early 2024. Americans are keeping a smaller slice of each dollar.
Why Older Americans Still Can’t Ignore the Gap
Older households do have more breathing room. The study’s oldest age group is 55 and up. In that group, 59% said they find it not at all difficult to cover expenses and pay bills. Among adults 18 to 34, it’s just 31%. Smaller or paid-off mortgages likely explain part of that edge.
Fixed incomes still leave thin margins, as the average retired worker’s Social Security check is estimated at $2,170 a month after the 2027 3.6% cost-of-living adjustment. Meanwhile, this year’s standard Medicare Part B premium rose to $202.90 a month from $185. Increases like that eat into a raise before groceries even enter the picture.
What Overspending Does to a Retirement Nest Egg
For retirees, spending more than income means drawing down savings faster than planned. Picture someone with $300,000 saved who follows a 4% withdrawal rate. That works out to $12,000 a year. Now say spending runs $500 a month above Social Security, pension, and that planned withdrawal. That’s another $6,000 a year, driving total withdrawals to $18,000, or 6% of the starting balance.
With no investment growth, $12,000 a year would last 25 years. At $18,000, the money runs out in about 17 years. Investment returns can extend that timeline, but market losses can shorten it, especially early in retirement. The basic problem remains: bigger withdrawals leave less room for unexpected expenses and market downturns.
Covering the gap with plastic costs even more. The average credit card APR, meaning the annual interest rate on a carried balance, is now 22.36% as of August 2026, according to the Federal Reserve. An unpaid balance can quickly grow at that rate.
How to Spot Overspending Before It Spreads
Start with a few months of real numbers. Add up everything coming in each month: Social Security, any pension, and the withdrawal you planned to take. Then total everything going out, including annual bills like insurance split into monthly amounts, and if money out tops money in most months, savings are quietly filling the hole.
Fixes That Make the Biggest Difference
- Cut the high fixed costs first. Housing, insurance, and cars usually dominate a budget. Shopping insurance at renewal, keeping a paid-off car longer, or downsizing can free up more than cutting back on coffee.
- Review subscriptions. Streaming services, apps, and memberships renew automatically. Cancel the ones nobody uses.
- Look into benefits. You may qualify for more assistance than you realize. The National Council on Aging’s BenefitsCheckUp tool screens adults 55 and up for more than 2,000 federal, state, and private programs, including help with Medicare costs, food, and utilities.
One Number to Check Every Month
Budgets can get complicated, but one number tells you a lot: how much money you have left after paying your monthly expenses. FINRA found that 26% of Americans spend more than they earn. Checking your own monthly surplus or shortfall can help you spot a problem early, before overspending takes a lasting toll on your retirement savings.
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David Beren has been a Flywheel Publishing contributor since 2022. Writing for 24/7 Wall St. since 2023, David loves to write about topics of all shapes and sizes. As a technology expert, David focuses heavily on consumer electronics brands, automobiles, and general technology. He has previously written for LifeWire, formerly About.com. As a part-time freelance writer, David’s “day job” has been working on and leading social media for multiple Fortune 100 brands. David loves the flexibility of this field and its ability to reach customers exactly where they like to spend their time. Additionally, David previously published his own blog, TmoNews.com, which reached 3 million readers in its first year. In addition to freelance and social media work, David loves to spend time with his family and children and relive the glory days of video game consoles by playing any retro game console he can get his hands on.
