61 Percent of U.S. Population Now Lives Paycheck to Paycheck

SAN FRANCISCO, Feb. 9, 2022 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading ... PressRelease 61PercentofU.S.PopulationNowLivesPaychecktoPaycheck 02/09/2022 DownloadthePDFversion PDFFormat(opensinnewwindow) KeyInsightsfromLendingClub'sandPYMNTS'6thPaycheck-To-PaycheckReport SANFRANCISCO,Feb.9,2022/PRNewswire/-- LendingClubCorporation (NYSE:LC),theparentcompany of LendingClub Bank,America'sleadingdigitalmarketplacebank, todayreleasedfindingsfromitssixtheditionoftheRealityCheck:Paycheck-To-Paycheckresearchseries, conductedinpartnershipwithPYMNTS.com.  Keytakeaway:Attheendof2021,61percentoftheU.S.populationlivedpaychecktopaycheck,upsevenpercentagepointssincethefirstreportinJune2021.Forty-twopercentofU.S.consumersearningmorethan$100,000annuallynowlivepaychecktopaycheckaswell,upthreepercentagepointsfromMay2021. Consumerswholivepaychecktopaycheckareinallincomebrackets Theshareofconsumerslivingpaychecktopaycheckremainsbelowahighof65%seeninDecember2020.Thatfigurewas 54%inMay2021andhasbeenrisingsincethen,hitting61%inDecember2021. Seventy-sevenpercentofconsumerswhoreportedearninglessthan$50,000peryearlivedpaychecktopaycheckinDecember2021,upslightlyfrom72%inMay2021.Meanwhile,66%ofthosewhoreportedearningbetween$50,000and$100,000nowlivepaychecktopaycheck—anotablerisefrom53%inMay2021. Moreaffluentconsumersalsoreportedlivingpaychecktopaycheck.Amongconsumerswhoreportedearningmorethan$100,000,42%werelivingpaychecktopaycheckinDecember2021,upfrom39%inMay2021. "Withmorethan3in5Americansnowlivingpaychecktopaycheck,thisrealityisimpactingeveryincomebracketacrosseverygeneration–atrendwhichwe'veonlyseenincreasesinceMay2021,"saidAnujNayar,FinancialHealthOfficeratLendingClub."Nowmorethanever,consumersneedanally.ThatiswhyatLendingClubwe'restrivingtobuildadigitalmarketplacebankthatputsthecustomers'needsatthecenterofeverythingwedo."  Consumerswholivepaychecktopaycheckhailfromallgenerations Thereporttakesadeepdiveintothegenerationaldemographicsofconsumerscurrentlylivingpaychecktopaycheck.Thefindingsindicatethatmillennialsarethemostlikelytolivepaychecktopaycheck,butthegreatestincreaseintheshareofconsumerslivingpaychecktopaycheckisseenamongbabyboomersandseniors.InDecember2021,54%ofbabyboomersandseniorswerelivingpaychecktopaycheck,a14-percentagepointincreasefrom40%inMay2021. Researchshowsthat70%ofbothbridgemillennialsandmillennialswerelivingpaychecktopaycheckinDecember2021.Sixty-fivepercentofGenerationZconsumersreportedlivingpaychecktopaycheckinDecember2021,upfrom55%inMay2021.SixtypercentofGenerationXconsumerswerealsolivingpaychecktopaycheckinDecember2021,with56%doingsoinMay. Savingslevelsareakeydifferentiatorbetweenthosewholivepaychecktopaycheckandstruggletopaybillsandthosewhodonot Paycheck-to-paycheckconsumersfallintotwocategories:thosewhoareandthosewhoarenotabletopaytheirbillseasily.Thedatareportsastrikinggapinsavingsbetweenconsumerslivingpaychecktopaycheckwhostruggletopaytheirbillsandthosewholivepaychecktopaycheckbutdonotstrugglewiththeirbills.Thedifferenceisevenmorestarkamongconsumerswhodonotlivepaychecktopaycheckandthosewhodoandhavetroublepayingtheirmonthlybills.Thischasmwidensevenfurtheramongolderagegroups. GenerationZconsumerswholivepaychecktopaycheckandhaveissuespayingtheirmonthlybillsreportthelowestaveragesavingsatjust$1,158.Millennialslivingpaychecktopaycheckwithissuespayingtheirmonthlybillsreportthehighestsavings,withanaverageof$3,731.Savingsamountsdecreaseandthenleveloffasconsumersgetolder. Theresearchfindsthatpayingforanemergencyexpensecanbeasignificantchallengeforallconsumerslivingpaychecktopaycheck,especiallyforthosewhostruggletopaytheirbillseachmonth.At59%,GenerationZconsumerswholivepaychecktopaycheckandhaveissuespayingtheirbillsarethemostlikelytobeunabletoafforda$400emergencyexpense.ThisisfollowedbyGenerationXconsumerswholivepaychecktopaycheckandstruggletopaytheirbillsat51%.Forty-sixpercentofbridgemillennials,44%ofmillennials,and42%ofbabyboomersandseniorswholivepaychecktopaycheckalsoreportthesame. Toviewthefullreport,visit:https://www.pymnts.com/study/reality-check-paycheck-to-paycheck-consumer-planning-financial-emergency/ Methodology TheNewRealityCheck:ThePaycheck-To-PaycheckReportisbasedonacensus-balancedsurveyof3,070U.S.consumersconductedfromDec.2,2021,toDec.14,2021,aswellasananalysisofothereconomicdata. About LendingClub  LendingClubCorporation(NYSE:LC)istheparentcompanyofLendingClubBank,NationalAssociation,MemberFDIC.LendingClubBankistheleadingdigitalmarketplacebankintheU.S.,wherememberscanaccessabroadrangeoffinancialproductsandservicesdesignedtohelpthempaylesswhenborrowingandearnmorewhensaving.Basedonmorethan150billioncellsofdataandover$70billioninloans,ourartificialintelligence-drivencreditdecisioningandmachine-learningmodelsareusedacrossthecustomerlifecycletoexpandseamlessaccesstocreditforourmembers,whilegeneratingcompellingrisk-adjustedreturnsforourloaninvestors.Since2007,morethan3.9millionmembershavejoinedtheClubtohelpreachtheirfinancialgoals.FormoreinformationaboutLendingClub,visithttps://www.lendingclub.com. CONTACT: ForInvestors: [email protected]  MediaContact: [email protected]  PYMNTSContact:[email protected]    Vieworiginalcontenttodownloadmultimedia:https://www.prnewswire.com/news-releases/61-percent-of-us-population-now-lives-paycheck-to-paycheck-301478421.html SOURCELendingClubCorporation