The wealthy who are at financial risk are “high earners whose lack of budgeting and profligate spending has them overleveraged and exposed,” the report explained. “While they appear to be doing well from the outside, they are only a step away from real financial trouble.”

The top arm of the “K” in the economic model represents the top 20% of high-income households—but nearly half of them could be walking on eggshells, according to the report. Those making $160,000 to $700,000 are divided into two financial groups, with the lower end of the proportion deemed to be “on thin ice” due to their debt and exposure to financial swings.

But there is no defined ceiling as to where the six-figure “on thin ice” crowd enter the “stable/responsible” group, as their financial standing depends on several variables, including where they live in the country.

“There is not a specific number where those two groups split because it actually depends on other factors we cover (such as cost of living area),” Katie Thomas, the report’s author and leader of the the Kearney Consumer Institute (KCI), explains to Fortune. “For instance, making $250,000 is different in San Francisco vs. Pittsburgh, which is why we decided not to make a hard cutoff between the two groups.” 

These wealthy consumers are vulnerable to housing costs, debt and interest rates, and the job market. Six-figure earners “on thin ice” are also highly exposed to stock market swings and lifestyle creep, as keeping up appearances has become more costly.

Meanwhile the 1% of households who are “secure elites,” earning more than $700,000 a year, are sitting “comfortable” in the K-shaped economy. Potential risks like the stock market, AI bubble exposure, and interest rates have little impact on their solid financial standing.

Macroeconomic risks put some six-figure elite more at risk than lower earners

CEOs and Wall Street analysts alike are all talking about the “K shaped economy”: a buzzword describing the growing disparity between the haves and have-nots. The upper part of the K represents higher-income Americans—who see their salaries and wealth rise—while the bottom part refers to lower-income households battling against weaker income gains and steep prices.

However, depending on their susceptibility to financial threats, some six-figure breadwinners are actually more at risk than lower-income earners, according to the Kearney report. 

The 20% of consumers making between $95,000 and $160,000 actually rest in the “comfortable” group at the bottom leg of the K-shaped economy. Similarly to the wealthy “on thin ice,” their biggest risks are job market, lifestyle creep, and interest rates, but the exposure is less severe. 

The report explains that technically these “comfortable” earners are in the bottom of the “K”—which looks to be a worse spot to be in—but their overall financial position is “more secure on a day-to-day, year-to-year basis thanks to a variety of factors.” They’re only mildly exposed to many of the current macroeconomic factors troubling higher-income earners like housing costs, debt, and labor market whims. They may bring home a lower income, but they have more buffers and financial assets to weather the storm. 

“Consumers in the arm of the K ‘on thin ice’ group may be highly exposed to housing and interest costs or stock market dips,” the report noted. Meanwhile, “Those in the leg of the K ‘comfortable’ group are less at risk, despite being on the seemingly unfavorable side.”

Six-figure earners are struggling to keep up with costs—and appearances 

Six-figure salaries may conjure fantasies of a high-flying lifestyle, but in actuality, many Americans find their high incomes aren’t cutting it. 

Instead of balling out on luxuries, around 64% of Americans earning $200,000 or more said they’ve used rewards points to pay for essentials, 50% used “buy now, pay later” for purchases under $100, and 46% relied on credit cards to scrape by, according to a 2025 survey from the Harris Poll. It’s become costly to live a luxe lifestyle.

“Our data shows that even high earners are financially anxious—they’re living the illusion of affluence while privately juggling credit cards, debt, and survival strategies,” Libby Rodney, chief strategy officer and futurist for the Harris Poll, said in a statement last year.

Even the 1% is feeling financial strain. About 41% of American workers earning between $300,001 and $500,000—and 40% of those making over $500,000—say they’re living paycheck to paycheck, according to a 2025 report from Goldman Sachs. And ironically, the financial outlook gets better going down the income spectrum; 16% of workers bringing home $200,001 and $300,000, 25% making $100,001 to $200,000 annually, and 36% earning $50,001 to $100,000 were struggling to make ends meet.

The paradox highlights the “impact of lifestyle creep, the phenomenon of luxuries becoming necessities to certain income cohorts,” according to the Goldman report. Six-figure workers reeling in half a million-dollar salaries are struggling to keep up with the joneses.

“Financial strain is not confined to low-income workers,” the 2025 study revealed. “A meaningful share of higher earners also report living paycheck to paycheck or making only limited progress toward long-term financial goals, underscoring that elevated expenses, debt burdens, and lifestyle inflation can erode savings capacity across the income spectrum.”