Non-Prime Boomers Struggle Financially, but Less So Than Other Generations
August 29 2017 - 08:30AM
Business Wire
- New Research from Elevate’s Center
for the New Middle Class counters perception that Boomers are in
worst shape of any generation, even if they are challenged
Despite the widespread perception that Baby Boomers (ages 51-64)
are struggling to make ends meet more than any other generation,
new research from Elevate’s Center for the New Middle Class has
found that Baby Boomers are actually struggling the least. In fact,
Baby Boomers are the most likely to have steady employment and run
out of money less often, compared to data from previous
studies.
“These findings come as a surprise, as they are
counter-intuitive to many of the trends we have seen widely covered
around Baby Boomers,” said Jonathan Walker, executive director of
Elevate’s Center for the New Middle Class. “Recently, it was
reported by the Federal Reserve that Baby Boomers are leaving the
workforce in such large droves that they are skewing employment
numbers, but we’ve found that 60 percent of non-prime Boomers have
had no employment change in the last 12 months, compared with 59
percent of Gen-X and 43 percent of Millennials.”
But even though they struggle less than other non-prime
generations, they are still facing challenges in the new economy,
especially when compared to their prime counterparts. Non-prime
Boomers are more likely to hold more than one job and are 10 times
more likely to run out of money every month.
Additional key findings include that – compared to their prime
cohorts – non-prime Boomers are:
- 2.2x as likely to say that their
finances cause them significant stress
- 4x as likely to live paycheck to
paycheck and 1 in 6 use payday loans
- 14x as likely to express difficulty
predicting monthly income and are 2.5x more likely to overdraft on
bank account
- 3x as likely to take a loan against
their 401k
- 46 percent less likely to go on
vacation
- More likely to be living in households
with 3 or more working adults
“The struggles that non-prime Boomers continue to face, despite
their relative stability when compared to other non-prime
generations, illuminates just how tough things are for non-prime
people of all ages. The struggles of other generations have a
direct impact on the struggles of Baby Boomers – for example, with
non-prime Millennials unable to make financial progress despite
their best efforts, fewer are buying homes, and more are living
with their Baby Boomer parents for longer, putting additional
strain on Boomers’ finances,” continued Walker.
Elevate’s Center for the New Middle Class conducts research and
promotes dialogue around the realities of being non-prime in
America, with the goal of increasing public understanding of these
realities, and furthering innovation for this sector of the
population.
About the Research
The Center’s research compared the responses of 1,217 Americans
with prime and non-prime credit scores using interviews conducted
December 6-14, 2016. For more details on the study, click here.
About Elevate’s Center for the New Middle Class
Elevate’s Center for the New Middle Class conducts research,
engages in dialogue, and builds cooperation to generate
understanding of the behaviors, attitudes, and challenges of
America’s growing “New Middle Class.” For more information, visit:
http://www.newmiddleclass.org
About Elevate
Elevate (NYSE: ELVT) has originated $4.5 billion in credit to
more than 1.7 million non-prime consumers to date. Its responsible,
tech-enabled online credit solutions provide immediate relief to
customers today and help them build a brighter financial future.
The company is committed to rewarding borrowers’ good financial
behavior with features like interest rates that can go down over
time, free financial training and free credit monitoring. Elevate’s
suite of groundbreaking credit products includes RISE, Elastic and
Sunny. For more information, please visit
http://www.elevate.com.
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Investor Relations:Solebury CommunicationsSloan Bohlen,
817-928-1646investors@elevate.comorMedia
Inquiries:VestedIshviene Arora,
917-765-8720elevate@fullyvested.com
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