While the economy may be recovering, many workers struggle to keep their ends in check.

Real wages are rising, but they cannot keep up with increased living expenses, which are growing rapidly. fastest annual pace in about four decades.

The past year has seen a significant increase in inflation eroded pay by 1.7%According to The U.S. Department of Labor.

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Inflation eroded pay by 1.7% over the past year
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Companies are expecting to give 3.4% raises in 2022

A recent study found that 61% of Americans lived from paycheck to paycheck at the end of 2021. That’s a decrease of just 5% from the high of 65 percent in 2020. LendingClub report.

The survey of over 3,000 adults revealed that 42% reported living paycheck-to-paycheck even among six-figure earners.

Shelly Ann Eweka (TIAA senior director of financial strategy and planning) stated, “Increasing prices are affecting a lot Americans.” Higher wages are good for workers as they can have extra cashflow to meet expenses.

Yet, she said that “with higher incomes often comes higher costs.”

In this year’s budget, many companies plan to provide their workers with a bonus. another 3.4% raise on average as the competition for talent intensifies — but that may not be enough.

Americans say that they should be earning roughly $122,000According to the study, it takes more than a year for a person to feel financially stable. A separate report is available from the financial website Personal Capital.

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