Americans See Incomes Drop as Cost of Living Rises

By Staff, Agencies

Three out of four middle-class Americans feel that their income can’t keep up with soaring inflation, a recent survey showed.

As many as 75% of those whose income falls into the $30,000 to $100,000 a year bracket said their earnings were falling behind the cost of living, according to a poll by financial services company Primerica.

The report also found that 77% of respondents believed the US would be in a recession by the end of the year.

According to the survey, most Americans are preparing for a recession by cutting back on spending, delaying major purchases, or planning to work longer before retirement. The research also found that 10% more Americans are relying on their credit cards than in early 2021.

Inflation reached 9.1% year-on-year in the US in June, the steepest increase since 1981. Overall, the report notes that 54% still feel positive about their personal finances. However, that percentage has dropped by six points since last March and represents the lowest positive rating since the poll began.

The Middle-Income Financial Security Monitor is a quarterly national survey, and the latest poll was conducted through online surveys between June 4 and June 6, 2022.