Economics/Class Relations

48 Percent of Americans with Annual Incomes over $100,000 Live Paycheck to Paycheck

Someone who makes $100,000 per year takes home around $68,000 after taxes. In some US cities, nearly $30,000 of that would go for rent, if not more. Then there are student loan payments, health insurance premiums, car payments, child care, etc., etc., etc.

Key Insights from LendingClub’s and PYMNTS’ 7th Paycheck-To-Paycheck Report

SAN FRANCISCO, March 3, 2022 /PRNewswire/ — LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America’s leading digital marketplace bank, today released findings from its seventh edition of the Reality Check: Paycheck-To-Paycheck research series, conducted in partnership with PYMNTS.com. The Wealth Divide Edition examines why consumers across different income brackets are living paycheck to paycheck and what they see as the most prominent stressors on their finances.

Key takeaway: Consumers of all income brackets are increasingly living paycheck to paycheck, including those earning higher incomes.

The Current Paycheck To Paycheck Landscape

The number of consumers living paycheck to paycheck has increased steadily since April 2021 and was 64% in January 2022 – 12 percentage points higher than April 2021 – with a 3% jump in just a month between December 2021 and January 2022.

The data shows that 48% of consumers earning more than $100,000 per year reported living paycheck to paycheck in January 2022 — up from 42% in December 2021. This number has fluctuated since May 2021, when it was 39%, before reaching a high of 50% in November 2021.

The share of those who earn between $50,000 and $100,000 who report living paycheck to paycheck is also on the rise. In May 2021, 53% of these middle-income consumers lived paycheck to paycheck. In January 2022, 67% reported living paycheck to paycheck — up from 66% in December 2021.

Wealth And Living Paycheck to Paycheck

Paycheck-to-paycheck consumers fall into two categories: those who are and those who are not struggling to pay their bills.

The share of consumers living paycheck to paycheck but not struggling to pay their bills has seen the largest increase since October 2021, especially among higher-income consumers.

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