Even on $100K-plus, more Americans are living paycheck-to-paycheck - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Life Insurance News
    • Annuity News
    • Health/Employee Benefits
    • Property and Casualty
    • Advisor News
    • Washington Wire
    • Regulation News
    • Sponsored Articles
    • Monthly Focus
  • INN Exclusives
  • NewsWires
  • Magazine
  • Webinars
  • Free Newsletters
Sign in or register to be an INNsider.
  • Exclusives
  • NewsWires
  • Magazine
  • Webinars
  • Free Newsletters
  • Insider Pro
  • About
  • Advertise
  • Editorial Staff
  • Contact
  • Newsletters

Get Social

  • Facebook
  • Twitter
  • LinkedIn
Advisor News
Newswires RSS Get our newsletter
Order Prints
January 31, 2023 Newswires No comments
Share
Share
Tweet
Email

Even on $100K-plus, more Americans are living paycheck-to-paycheck

Washington County Daily News (WI)

By Alex Tanzi

Bloomberg News (TNS)

The share of Americans who say they live paycheck-to-paycheck climbed last year, and most of the new arrivals in that category were among the country’s higher earners, a new study shows.

Some 64% of US consumers — equivalent to 166 million people — were living paycheck-to-paycheck at the end of 2022, according to the survey by industry publication Pymnts.com and LendingClub Corp.

That’s an increase of 3 percentage points from a year earlier, or 9.3 million Americans. And out of that group, some 8 million were people earning more than $100,000 a year. More than half of that income cohort said they lived paycheckto-paycheck in December, up 9 percentage points from a year earlier.

The numbers likely reflect growing strain on household budgets after the cost of living surged, wages often failed to keep up, and pandemic savings got drawn down.

‘Prospects are cloudy’

This year may bring further pressure, with less than half of the survey respondents saying they expect their incomes to keep pace with inflation.

"Prospects for consumer spending are cloudy," said Lydia Boussour, senior economist at EY Parthenon.

"Elevated prices, eroded personal savings and increased reliance on credit point to weak consumer spending this winter. These dynamics will be exacerbated by negative wealth effects from lower stock prices and declining home values."

Other indicators also point to some level of financial stress. The latest University of Michigan survey showed that consumer sentiment, while it’s climbed from this year’s lows, remains far below pre-pandemic levels. Fourth-quarter economic growth data published on Friday highlighted a slowdown in household spending.

Inflation-adjusted disposable incomes remain below their levels at the start of the pandemic in 2020, indicating that consumers have seen no real income gains in three years, according to the Bureau of Economic Analysis.

The LendingClub report didn’t provide a definition for paycheck-to-paycheck, which typically means that people rely entirely on their monthly incomes to meet basic obligations and would be in immediate difficulty if income was interrupted.

The label doesn’t necessarily mean that people are having trouble staying current on debt payments, but the survey suggests that a growing number are. It found that 24% of respondents had issues paying their bills in December. Among those earning more than $100,000 and living paycheck-to-paycheck, the share rose to 16% from 11% a year earlier.

"Elevated prices, eroded personal savings and increased reliance on credit point to weak consumer spending this winter.These dynamics will be exacerbated by negative wealth effects from lower stock prices and declining home values."

– Lydia Boussour, Senior economist at EY Parthenon

Jeff Kowalsky/AFP via Getty Images/TNS

Older

Opinion: the state wealth-tax alliance

Newer

Survey: 80 Percent of Millennial Homebuyers Are in Debt

Advisor News

  • How a defined process eases client concerns
  • Study shows significant growth in 401(k) balances for younger workers who consistently participate
  • Powell says banking system is 'sound' following SVB collapse
  • Democratic infighting complicates Schumer response to banking crisis
  • Four indicted in defrauding NBA players a collective $13M
Sponsor
More Advisor News

Annuity News

  • Rethinking a 2023 rebalance as rate hikes remain
  • Why MYGAs are enjoying a renaissance
  • Nationwide and Fidelity Investments establish distribution relationship
  • Conning: Growing demand for in-plan annuities creates opportunity for insurers
  • VA sales slump to lowest level in 25+ years, Wink Inc. reports
Sponsor
More Annuity News

Health/Employee Benefits News

  • Alzheimer's volunteer urges Medicare, Medicaid to approve new drug
  • Lakeland special needs day care closed amid Medicaid fraud arrest
  • Idaho House votes to kill $4.7 billion Medicaid budget
  • Medicaid expansion set to pass in North Carolina with final ceremonial vote Thursday
  • Medicaid COVID expansion nears end
More Health/Employee Benefits News

Life Insurance News

  • Modern Life announces distribution partnership with Symetra
  • LIMRA: Life insurance premium expected to maintain record levels through 2024
  • Sordid Murdaugh crime saga far from over
  • Iowa woman gets 2 years in prison for defrauding life insurance policy of neighbor
  • Maximum life insurance coverage for vets increased to $500,000
More Life Insurance News

- Presented By -

Top Read Stories

  • Is your client emotionally ready for retirement?
  • Why MYGAs are enjoying a renaissance
  • Insurance industry reps leery of NAIC big data, AI questions
  • Nationwide and Fidelity Investments establish distribution relationship
  • As continuous enrollment provision ends, states begin Medicaid ‘unwinding’
More Top Read Stories >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Life Insurance News
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty
  • Advisor News
  • Washington Wire
  • Regulation News
  • Sponsored Articles
  • Monthly Focus

Top Sections

  • Life Insurance News
  • Annuity News
  • Health/Employee Benefits News
  • Property and Casualty News
  • AdvisorNews
  • Washington Wire
  • Insurance Webinars

Our Company

  • About
  • Editorial Staff
  • Magazine
  • Write for INN
  • Advertise
  • Contact

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2023 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • AdvisorNews

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.