A third (33%) of middle-class respondents to a survey released today are either not confident or not sure they will have enough retirement savings—and middle-aged respondents reported less confidence about their retirement savings than their younger and older counterparts.
“A sizable share of the middle class continues to lack confidence about having enough retirement savings to live comfortably through their retirement years.”
ACLI President & CEO David Chavern
The American Council of Life Insurers released today its April 2025 Financial Resilience Index, which captures Q4 2024 cost pressures and resources on America’s middle class, and includes an accompanying quarterly survey with data gathered in March 2025 conducted by The Harris Poll that gives a snapshot of how middle-class households are feeling about the state of their finances. The survey explores middle-class respondents’ confidence in their retirement savings and age at which middle-class respondents hope to retire.
The March 2025 survey found 40% of 50–64-year-old middle-class respondents, and 38% of the 35-49-year-old age group, are either not confident or not sure they will have enough retirement savings, compared to just over a quarter of the 18-34-year-olds and 65+ age group (27% and 28%, respectively). The 50-64 age group—those closest to nearing retirement—are significantly less likely to be very confident about their retirement savings than every other age group (9% vs. 23% for those 18-34; 19% for those 35-49; and 21% for those 65+).
“A sizable share of the middle class continues to lack confidence about having enough retirement savings to live comfortably through their retirement years, especially those quickly approaching retirement,” said ACLI President & CEO David Chavern. “The findings reinforce the importance of dedicated savings for retirement.”
In general, the survey found that middle-class respondents’ hopes for retirement closely mirror those reported by upper-income respondents. More than half of middle-class and upper-income respondents hope to retire at 65 or younger (54% for both groups). More differences were found between middle-class and lower-income responses. Middle-class respondents were more likely to hope to retire after 65 than lower-income respondents (37% compared to 27%).
Index finds decline in retirement readiness
ACLI’s April 2025 Financial Resilience Index shows the interplay between cost pressures and resources to illustrate how current macroeconomic factors, Fed moves, etc., are impacting the middle class (as well as historical benchmarks dating back to 2000 for comparison).
While cost pressures lessened at the end of 2024 for America’s middle-class, resource resilience also fell at year-end. The fall in resource resilience indicates less access to capital and less retirement readiness—which edged down due to increased debt delinquency expectations and slower asset growth. Income also fell at the end of 2024.
The April Index results show that as inflation inches back towards historical norms, stubbornly elevated housing costs continue to drive cost pressure on the middle class. Additionally, the Index found:
• Income levels and retirement readiness remained high for the middle class compared to historical norms, but dipped in Q4 2024.
• Wage growth was still well above average but was clearly and consistently falling from its peak in early 2023.
• Retirement assets and non-retirement wealth slowed in growth, and there was an increase in the share of middle-class households expecting to miss debt payments—an expectation that indicates uncertainty amongst consumers.
In Q4 2024, the Headline Index—the score used to measure household resilience—was 19.2, down 13 points from the previous quarter and down 8 points from Q4 last year. This indicates that, although middle-class financial resilience was still relatively strong, gains were moderating.
Softening wage growth, slower asset growth, and concerns around debt delinquencies resulted in the lowest Resource Resilience score since Q4 2020. However, the score is still solidly positive; the Q4 2024 decline can be understood as resource resilience coming back down toward historical norms after several quarters of very strong growth.
“As inflation has cooled, cost pressures did not weigh on middle-class American families in Q4 2024 as intensely as they did a year prior,” said ACLI Chief Economist Andrew Melnyk. “However, housing costs didn’t come down at the same pace and kept cost of living high. While costs of care and education edged down and were reflective of historical norms, childcare remained a challenge and financial burden for middle-class families.”
For more information about both the Index and the survey visit: Financial Resilience Index.
SEE ALSO:
• ‘Magic Number’ for Retirement Drops to $1.26M for 2025
• Debt Joins List of Competing Retirement Worries for Gen X, Boomers
• Top Financial Fears Impacting the Middle Class
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.