A new report reveals deep pessimism from employed adults in the U.S. about their financial future.
According to the 2026 Financial Outlook Report from AI resume builder Resume Now, which polled 1,011 working Americans, nearly half of respondents (49%) say they don’t believe their wages will ever catch up with the rising cost of living, with another 32% saying their wages won’t catch up for many years. Less than one in five (19%) think their wages will catch up to inflation in 2026.
“Workers are telling us something critical: they’re not just stretched thin, they’re losing hope,” Keith Spencer, a career expert at Resume Now, said in a statement. “When half the workforce believes their wages will never catch up to the cost of living, that’s more than financial stress. It’s a fundamental breakdown of confidence in the economy. People are postponing milestones, feeling underpaid, and bracing for another year of strain. These findings underline how urgently workers need stability, transparency, and meaningful wage growth.”
Key findings from the report include:
- Half of American workers (49%) believe their wages will never catch up to the cost of living.
- Nearly half (48%) have postponed a major life milestone, including buying a home, having children, or changing careers, due to rising costs.
- More than one-third (38%) expect financial stress to increase in 2026, and 39% overall expect no improvement.
- Pay transparency remains a major workplace issue: 77% of workers feel unclear about salary ranges, raises, or bonus structures at their own companies.
- If given a raise, most workers would use it for survival, not optional spending: 37% would save it, 32% would cover basic expenses, and 26% would pay down debt.
- A combined 69% feel underpaid, with only 2% believing they are overpaid.
Americans are losing faith that wages will catch up
When asked if they believed wages would ever fully catch up to the cost of living:
- 19%: yes, within the next year.
- 32%: yes, but it will take many years.
- 49%: no, not in my lifetime.
Most workers feel underpaid
A combined 69% of American workers feel undercompensated:
- 27% say their salary is much lower than it should be.
- 42% say it is somewhat lower.
- Only 2% feel overpaid.
If given a raise, most would use it for survival, not luxury
How Americans would use a cost-of-living raise:
- 37% add to savings.
- 32% cover everyday expenses.
- 26% pay down debt.
- 3% vacation.
- 2% education or career development.
Many Americans are delaying major life milestones
- 48% have postponed a major life decision due to cost-of-living pressures. Examples include buying a home, having children, going back to school, or changing jobs.
Financial stress is expected to get worse
Overall, 77% expect financial stress to stay the same or increase. Workers’ expectations for 2026:
- 39%: stress will stay the same.
- 25%: stress will increase somewhat.
- 13%: stress will increase significantly.
- Only 23% expect a decrease.
Employer pay transparency is lacking
Many feel unclear on salary ranges, raises, and bonus structures:
- 23%: very transparent.
- 43%: somewhat transparent.
- 34%: not very or not at all transparent.
Methodology: The findings provided were gathered through a survey of 1,011 U.S. adults on Dec. 7, 2025. Participants answered a wide range of questions about income, financial stress, cost of living, wage trends, employer transparency, and future economic outlook. Question formats included multiple choice, scaled responses, and multiselect options.
Photo illustration credit: erhui1979/iStock
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