Are half of Connecticut households living paycheck to paycheck?

Many Connecticut residents are financially struggling, but it’s not half.

While no recent study has used a “paycheck-to-paycheck” framing, 39% of Connecticut households were struggling to make ends meet in 2022, including nearly 11% of families living in poverty, according to a 2024 report issued by the United Way in Connecticut.

The United Way uses a methodology called ALICE — Asset Limited, Income Constrained, Employed — identifying families unable “to afford the basic cost of living in their county” but often ineligible for public assistance programs. About 28.8% of the 39%, or 563,512 struggling households, were ALICE families.

A family of four needed over $113,000 annually in 2022 to cover basic costs.

Federal Reserve data shows that 18% of adults reported they couldn’t pay their bills in full in October 2022, with low-income households far more likely to fall short.