An increasing number of Americans were forced to live paycheck-to-paycheck during 2021, according to new research published by LendingClub Corporation (NYSE:LC).
What Happened: In the latest edition of LendingClub’s Reality Check: Paycheck-To-Paycheck research series, conducted in partnership with PYMNTS.com, it was determined that 61% of the U.S. population had a paycheck-to-paycheck existence last year, up seven percentage points since the first report in June 2021. The highest percentage recorded in the Reality Check’s research was 65% in December 2020.
This financial situation was not unique to a specific income bracket. LendingClub said 42% of consumers earning more than $100,000 annually are living paycheck-to-paycheck, up three percentage points from May 2021, while 77% of consumers who reported earning less than $50,000 per year were in the same situation, up slightly from 72% in May 2021.
Among age demographics, 70% of both bridge millennials and millennials reported living paycheck-to-paycheck, compared to 65% of Generation Z consumers and 60% of Generation X consumers.
See Also: Live Trading with Benzinga - Day Trading & Options Trading What To Trade?
What Happens Next: "With more than 3 in 5 Americans now living paycheck to paycheck, this reality is impacting every income bracket across every generation — a trend which we've only seen increase since May 2021," said Anuj Nayar, financial health officer at LendingClub.
Most Americans are not expecting an immediate turn for the better. A recent Gallup Poll found nearly eight in 10 Americans predict inflation will go up, with half of the respondents forecasting it will increase "a lot."
There is more optimism over the stock market’s near future, with 46% of Gallup respondents believing it will go up while 29% insisting it will go down.
Photo: Jerry Nettik/Pixabay.
