The Number of Consumers Living Paycheck to Paycheck Has ...

61% or 203 Million Americans are Living Paycheck To Paycheck, ... the parent company of LendingClub Bank, America's leading digital ... PressRelease TheNumberofConsumersLivingPaychecktoPaycheckHasIncreasedYear-Over-YearAcrossAllIncomeLevels 08/01/2022 DownloadthePDFversion PDFFormat(opensinnewwindow) 61%or203MillionAmericansareLivingPaycheckToPaycheck,Upfrom55%aYearAgo 33.5millionAmericansspentmorethantheyearnedinthepastsixmonths SANFRANCISCO,Aug.1,2022/PRNewswire/-- LendingClubCorporation (NYSE:LC),theparentcompanyofLendingClubBank,America'sleadingdigitalmarketplacebank,todayreleasedfindingsfromthe12theditionoftheRealityCheck:Paycheck-To-Paycheckresearchseries,conductedinpartnershipwithPYMNTS.com.TheConsumerSavingsEditionexaminesthefinanciallifestyleofU.S.consumerswholivepaychecktopaycheck,thefactorsthatcausefinancialdistressandtheimpactoffinancialstressorsontheirabilitytomanageexpensesandputasidesavings. KeyFindings - InJune2022,61%ofAmericanswerelivingpaychecktopaycheck,upfromalowof52%inApril2021and55%inJune2021.- Averagesavingsdropped$517from$11,724inMay2022to$10,757inJune2022.- Thebiggestriseinpaycheck-to-paycheckconsumerswasinconsumersearningbetween$100,000and$150,000,up11percentagepointsfromMay2022to52%inJune2022.-Theaverageconsumerstores11%oftheirsavingsineitherstocksorbonds,yethalfofallstockholdersreportedthattheirportfoliosrecentlylostvalueinthelastthreemonths.-Anestimated33.5million—or13%—ofU.S.consumersspentmorethantheyearnedinthepastsixmonths. "Whatadifferenceayearmakes.Lastsummerwewereallworriedabouthowquicklytheeconomywouldrecover.Now,asinflationcontinuesitsupwardsswing,consumersarefindingitmoredifficulttomanagespendingandareeatingintotheirsavingsasfinancialpressuresmount,"saidAnujNayar,LendingClub'sFinancialHealthOfficer."Thatsaid,consumersarenotyetslowingdowntheirspendinghabits,despitetheriseinthecostofliving.Notonlyisitgoingtobedifficultforthemtohandlefutureemergencyexpenses,butevenforeseenpaymentslikeeducation,studentloans,orhousingexpensesmaybehardertobalancefortheeverydayAmericanconsumer." Today'sPaycheck-To-PaycheckLandscape LivingpaychecktopaycheckisthemostcommonfinanciallifestyleintheUnitedStates,withincreasingnumbersofhigh-incomeconsumersnowlivingpaychecktopaycheck.InJune2022,61%ofAmericanswerelivingpaychecktopaycheck,upfromalowof52%inApril2021and55%inJune2021. ThehighestincomebracketshaveexperiencedsignificantupswingsinthesharelivingpaychecktopaycheckfromMaytoJune2022.Thebiggestriseinpaycheck-to-paycheckconsumerswasforthoseearningbetween$100,000and$150,000,up11percentagepointssinceMay2022to52%. Forty-onepercentofthoseearningbetween$150,000and$200,000annuallylivedpaychecktopaycheckinJune2022,upsixpercentagepointsfrom35%inMay.Furthermore,theshareofconsumersearningmorethan$200,000wholivedpaychecktopaycheckrose6percentagepointsfrom30%inMayto36%inJune2022.   Figure:Consumerslivingpaychecktopaycheckinlastthreemonths Shareofconsumerswholivepaychecktopaycheck,overtimeandbyannualincome HowInflationaryPressuresImpactSavings Anestimated33.5million—or13%—ofU.S.consumersspentmorethantheyearnedinthepastsixmonths.AmongallU.S.consumers,averagesavingsdroppedfrom$11,274inMayto$10,757inJune,anindicationthatinflationhashadanimpactonallconsumers'abilitytosave. Paycheck-to-paycheckconsumersaremorelikelytoprioritizeeasyaccesstofundswhenchoosingwheretoholdtheirsavings,keepinganaverageof70%oftheirmoneyinbanks,digitalwallets,orcash.Preferenceformorediversifiedportfoliosincreasessignificantlyamonghigh-incomeconsumers.  Whenchoosinghowtosave,theaverageconsumerhashalfoftheiravailablesavingsstoredinabankordigitalwalletsuchasPayPalorVenmo.Theaverageconsumeralsokeeps11%oftheirsavingsineitherstocksorbonds,and20%ineducationorretirementaccounts.Meanwhile,consumersinthehighestincomebracketallocateanaverageof58%oftheirsavingstoassetsotherthancashorfundsinafinancialinstitution.Consumersearningmorethan$200,000peryearinvested28%oftheiravailablesavingsinstocksandbonds,whileconsumersearningbetween$100,000and$200,000invested14%oftheiravailablesavingsinstocksandbonds.  Themostcitedfactorinfluencinghowconsumersstoretheirsavingsiseaseofaccesstotheirmoney,citedby46%ofconsumerswhohavesavings.Whilequickaccessisthedominantfactorinfluencingsavingspreferencesamongpaycheck-to-paycheckconsumersandlowerincomeconsumers,thepreferencefordiversifiedportfoliosincreasessignificantlyamonghigh-incomeconsumers:31%ofconsumersearningmorethan$200,000annuallysaidhavingadiversifiedportfolioisthemostimportantreasonforchoosinghowtheystoretheirsavings,comparedtojust8.7%ofthoseearninglessthan$50,000peryear. Recentstockmarketvolatilityandinflationhavemadeeaseofaccesstofundsmoreofapriorityforfinanciallystrugglingconsumersthanforthosewithhigherincomeswhomaybemoreabletohavealonger-termhorizonontheirsavingsportfolios. Toviewthefullreport,visit:https://www.pymnts.com/study/reality-check-paycheck-to-paycheck-inflation-stock-portfolios-consumer-savings/ Methodology NewRealityCheck:ThePaycheck-To-PaycheckReport:TheConsumerSavingsEditionisbasedonacensus-balancedsurveyof3,583U.S.consumersconductedfromJune8toJune27.ThePaycheck-To-PaycheckseriesexpandsonexistingdatapublishedbygovernmentagenciessuchastheFederalReserveSystemandtheBureauofLaborStatisticstoprovideadeeplookintotheelementsthatlieatthebackboneoftheAmericanconsumer'sfinancialwellness:income,savings,debtandspendingchoices.OursamplewasbalancedtomatchtheU.S.adultpopulationinasetofkeydemographicvariables:51%ofrespondentsidentifiedasfemale,31%werecollege-educatedand35%declaredincomesofover$100,000peryear. AboutLendingClub   LendingClubCorporation(NYSE:LC)istheparentcompanyofLendingClubBank,NationalAssociation,MemberFDIC.LendingClubBankistheleadingdigitalmarketplacebankintheU.S.,wherememberscanaccessabroadrangeoffinancialproductsandservicesdesignedtohelpthempaylesswhenborrowingandearnmorewhensaving.Basedonmorethan150billioncellsofdataandover$70billioninloans,ouradvancedcreditdecisioningandmachine-learningmodelsareusedacrossthecustomerlifecycletoexpandseamlessaccesstocreditforourmembers,whilegeneratingcompellingrisk-adjustedreturnsforourloaninvestors.Since2007,morethan4millionmembershavejoinedtheClubtohelpreachtheirfinancialgoals.FormoreinformationaboutLendingClub,visithttps://www.lendingclub.com. CONTACT:   ForInvestors:[email protected]   MediaContact:[email protected]   PYMNTSContact:[email protected] Vieworiginalcontenttodownloadmultimedia:https://www.prnewswire.com/news-releases/the-number-of-consumers-living-paycheck-to-paycheck-has-increased-year-over-year-across-all-income-levels-301596552.html SOURCELendingClubCorporation