The Data Point: 50% of Consumers Earning $100K Now Living Paycheck to Paycheck

Perception and reality are known to collide and create rude awakenings as we’re finding after months of researching how far paychecks are stretching in the pandemic era.

The latest in the series New Reality Check: The Paycheck-To-Paycheck Report, a PYMNTS and LendingClub collaboration, The Regional Divide Edition, is based on a February survey of 3,250 U.S consumers and looks at the increasing number of people living paycheck to paycheck in different parts of the U.S., and related impacts on spending power. Here are key data points.

• 50% of consumers earning more than $100,000 per year reported living paycheck to paycheck in February

With inflation up across the board, the latest report states that “50% of consumers earning more than $100,000 per year reported living paycheck to paycheck in February, up from 48% in January. The share of those earning between $50,000 and $100,000 who report living paycheck to paycheck decreased to 65% in February from 67% in January, but the share of those earning less than $50,000 who live paycheck to paycheck rose to 80% from 77% in that same time frame.”

• 28% of urban consumers are most likely to live paycheck to paycheck with issues paying bills

As rents and mortgages climb precipitously, paycheck pain is being felt by more people in more places. Not surprisingly, pricey urban areas are prone to paycheck-to-paycheck living.

New research finds 28% of urban consumers saying they’re living paycheck to paycheck and have issues paying bills, with 24% of those living in rural areas saying the same. “Among paycheck-to-paycheck consumers living in urban areas, 35% earn more than $100,000 per year, while 20% of those living in rural areas earn the same,” per the study.

• Between 40% and 46% of struggling consumers could not afford a $400 emergency

The number of consumers earning between $50,000 and $100,000 and living paycheck to paycheck dropped to 65% in February from 67% in January, but the share of those earning less than $50,000 who live paycheck to paycheck rose to 80% from 77% in that same time frame.

We found that should a $400 emergency expense arise, 46% of rural consumers living paycheck to paycheck with and struggling could not pay. “Paycheck-to-paycheck consumers with difficulties paying monthly bills in urban and suburban areas seem to be in a slightly better position, with just 40% and 42%, respectively, reporting they would not be able to pay.”

Get the study: New Reality Check: The Paycheck-To-Paycheck Report, Regional Divide Edition