Middle-market Americans are feeling optimistic about the state of their finances, finds a new report out today by TruStage, an insurance, investment, and technology provider.
The 2024 Middle Market Survey by the firm found that almost all (92%) of middle-class earners surveyed, which comprised of 1,500 U.S. adults with a household income between $50,000 to $150,000, say they can cover their monthly expenses. Furthermore, over half (55%) are allocating at least some of their money towards savings. Seventy-one percent of middle-market Americans describe their financial situation as “good,” while another 37% say it is improving.
Younger middle-market workers were likelier to be more optimistic about the state of their finances compared to their older counterparts. For example, 61% of middle-market Gen Zers and 49% of Millennials described the state of their finances as “improving,” while only 33% of Gen Xers and 26% of Baby Boomers said the same.
Despite their optimism, 61% of middle-market Americans believe the economy is on the “wrong track,” with rising inflation (87%), higher taxes (84%), and the upcoming Presidential election (81%) among their top concerns. As a result, while they are saving, middle-market Americans reported saving at a lower rate compared to years prior. More than half of respondents said they are saving less because of rising inflation (59%) and higher taxes (51%).
This could potentially extend to retirement savings, finds TruStage. While still on track with their retirement savings goals, 43% of middle-market Americans surveyed said they do not feel prepared for retirement. This is as 85% reported having at least $10,000 in retirement funds per household, while half said they have a minimum of $100,000 in retirement assets.
Such insecurities could signal an opportunity for financial services companies to provide education and resources that drive retirement confidence, especially as more Americans feel a lack of support among their advisors, reported TruStage. According to the research, 46% report meeting at least once with a financial advisor. This number drops to 44% for African Americans, 43% for women, and 41% for Millennials.
The costs associated in working with an advisor was reported as a great determent for middle-market Americans, with one-third of respondents and 38% of women saying it is too expensive to work with a financial advisor.
Insurance, including home, health, auto, life, etc., was ranked the most accessible financial product, followed by investment accounts, with 92% and 78% finding these services accessible, according to TruStage. Compared to the other financial services polled, only 72% of respondents believe financial advisors are accessible.
“The fact that more than half of the middle market still have not seen a financial advisor points to a broader challenge that our industry must rise to,” said Terrence Williams, CEO of TruStage. “Our survey shows that people believe insurance products are accessible, but the perceptions of cost related to financial advisors remain a barrier. We need to directly address these misconceptions to ensure every American feels they have access to guidance and resources that help them confidently make financial decisions.”