United Way of Connecticut has released its 2020 ALICE report, ALICE in Connecticut: A Financial Hardship Study. ALICE, or Asset Limited, Income Constrained, Employed, provides a metric representing households above the Federal Poverty Level, but below the basic cost of living in Connecticut.
Financial challenges facing households in Connecticut are further exacerbated by the unprecedented public health crisis resulting from the COVID-19 pandemic.
Some key findings from this report include:
- Combining the 27% of Connecticut households below the ALICE threshold with the 11% of households below the Federal Poverty Level, 38% (or 513,727) households in Connecticut struggle to make ends meet.
- 47% of households headed by people 65 or older live below the ALICE thresholds.
- 57% of Black households live below the ALICE threshold, while 63% of Hispanic households live below the ALICE threshold.
- Connecticut households remain vulnerable, more than one-third do not have enough savings or income to cover unforeseen expenses.
- Although Connecticut wages are high compared to other parts of the country, the cost of living in the state has outpaced wages.
United Way identifies the Household Survival Budget in Connecticut (that is the minimum annual cost to afford six basic necessities: Housing, Child Care, Food, Transportation, Technology, and HealthCare) for a single adult as $28,908, and $90,660 for a family of four.