Regardless of how much money they make, most consumers are living paycheck-to-paycheck, according to a recently released report, and while the number of people who say they are living this way is down from earlier in 2021, rising wages are still not doing enough to help people keep up with the rapid rate of inflation.
More than 60% of the population was living paycheck-to-paycheck at the end of 2021, down from 65% last May, according to data released by LendingClub. Among those earning at least $100,000 per year, 42% of them said they are living this way, too.
Within the population of people who are living paycheck-to-paycheck, about 40% are able to pay their bills every month, while 22% struggle to do so.
Illustrating what it means to live paycheck-to-paycheck, 59% of the members of Generation Z would be unable to pay an emergency expense of $400, compared with 44% of Millennials, 51% of Generation X, and 42% of Baby Boomers. Borrowing the money from a friend or family member would be the most likely course of action for anyone who needed to come up with that kind of money for an emergency, according to the report.
In order to feel financially secure, the average American said he or she needs to make $122,000 per year, which is more than double the median salary in the United States.
Surprisingly, perhaps, is the growing number of Baby Boomers and Seniors who are now living paycheck-to-paycheck. The number of Baby Boomers and Seniors who said they are living this way increased to 54% as of the end of 2021, up from 40% who were doing so last Many. That represents the age demographic with the biggest jump among those who aren’t saving any money.
