Almost 50% of All High-Income Earners Live Paycheck to Paycheck, New Report Says
Written by
Josephine Nesbit
Edited by
Daria Uhlig
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
While low-income consumers struggle the most to make ends meet, even high-income consumers are feeling the effects of inflation. As of February 2023, 62% of U.S. consumers live paycheck to paycheck, a new report found.
A new analysis released through a PYMNTS and LendingClub collaboration looked at how U.S. consumers are turning to alternative sources of income to supplement what they receive from their regular job. The report, “New Reality Check: The Paycheck-to-Paycheck Report,” found that 48% of high-income earners, or those making over $100,000 per year, lived paycheck to paycheck in February 2023. This is up from 47% the same time last year.
The number of middle-income consumers — those making between $50,000 and $100,000 annually — living paycheck to paycheck remained at 62%. Low-income consumers — those making under $50,000 — made some progress over the last year, with 75% reporting living paycheck-to-paycheck in 2023 compared to 79% in 2022.
PYMNTS noted that these shifts reflect financial shifts in the economy, “further highlighting that struggling consumers have adapted to recent economic changes.” For example, 60% of consumers reported being employed, but almost half had a side job or other source of supplemental income.
“While consumers have adjusted to inflationary pressures by budgeting and spending less, many have turned to supplemental income with a side job or alternative income sources to improve their financial standing,” Anuj Nayar, financial health officer at LendingClub, said in a company press release.
The data suggests that turning to supplemental income will continue to gain momentum. Fifty-one percent of those who have not received supplemental income in the last three months are at least somewhat likely to find another income source within the next 12 months.
