High Earners Squeezed Too

Benzinga reported Monday that a fresh CNN/SSRS poll has delivered a striking finding. High earners inflation anxiety is now pervasive even among the most affluent American households.

The survey found that 57% of workers in households earning $150,000 or more annually believe their pay is not keeping pace with prices. That result challenges a common assumption that inflation is primarily a burden for lower-wage workers.

Purchasing Power Erodes at Every Income Level

The problem is not a drop in nominal earnings. Six-figure households are still pulling in strong paychecks. The difficulty is that the price floor across everyday categories has risen so sharply that real purchasing power has shrunk noticeably.

Groceries, fuel, and housing costs have all climbed substantially over the past two years. For many high earners, the gap between income growth and expense growth has quietly closed. One Indiana respondent captured the mood: their household was earning more than ever yet felt less financially free than at any prior point, according to the survey cited by Benzinga.

Background: Wage Data Tells a Mixed Story

Bank of America data from April offered a nuanced picture of the labour market. Higher-income workers saw wage gains of roughly 5.6% in March. That outpaced the 1-2% recorded by lower- and middle-income groups. Yet even that premium growth is failing to outrun the cumulative price increases that have built up since 2021.

The Federal Reserve has brought inflation down from its 2022 peaks, but price levels remain elevated. Many consumers are not experiencing relief. They are experiencing a slower rate of pain, which feels little different at the checkout counter.

Recession Fears and a Savings Mindset Take Hold

The survey’s broader findings reinforce a conservative consumer posture. Close to 88% of respondents said the current environment favours saving over making large purchases. That sentiment was consistent across income brackets, including those in the top tier.

Nearly 70% of those polled expect a recession within the next twelve months. That expectation alone can become self-fulfilling by dampening consumer spending and business investment.

A Georgia respondent in his twenties said he could not envision his generation ever moving beyond renting. The comment underlines how housing affordability sits at the centre of a broader sense that upward economic mobility has stalled.

For financial planners and policymakers alike, the finding that even high-income households are psychologically squeezed adds pressure to the debate over how durable the current expansion truly is.