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Non-Prime Boomers Struggle Financially, but Less So Than Other Generations

FORT WORTH, Texas--(BUSINESS WIRE)--

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 (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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