Top Financial Fears Impacting the Middle Class
A new TCRS report highlights the leading retirement fears and solutions for middle class workers
Just one in five middle class workers are confident in their ability to retire, showing a bleak outlook of retirement for many in the U.S. Still, near and future retirees can mitigate long-term concerns by implementing short-term planning strategies, finds a new report by the Transamerica Center for Retirement Studies (TCRS).
The firm’s latest report, “The Retirement Outlook of America’s Middle Class,” surveyed 5,700 respondents defined as the middle class, with household incomes ranging between $50,000 and $200,000. It examines the middle class’s health and wellbeing, employment status, personal finances, and retirement outlook, while also providing recommendations for Congress and public policy to further support financial and retirement attitudes.
As the largest social class in the U.S, middle class workers have been lauded for their stability. A 2024 study by insurance, investment, and technology provider TruStage found that 92% of respondents to their survey said they could cover all their monthly expenses. Over half were also allocating at least some of their money towards savings. In all, 71% of Americans described their financial situation as “good.”
Despite this, a growing number are uncertain about the future state of their retirement. TruStage’s report found that while still on track with their retirement goals, 43% of respondents report feeling unprepared for retirement, as many continue to juggle caregiving responsibilities, healthcare, day-to-day costs, and other priorities. Transamerica’s report found that among the top competing financial priorities are paying off debt (59%), saving for retirement (49%), building emergency savings (42%), saving for a major purchase or life event (31%), and covering basic living expenses (31%).
“Only 21% of people in the middle-class said they knew a lot or had a strong knowledge of personal finance. In many ways, how you manage your money makes as much or even greater of an impact in how much you save,” said Catherine Collinson, CEO and president of the Transamerica Institute and TCRS, in an interview with 401(k) Specialist. “So, by learning more, you can make more informed decisions and optimize your savings in a way that would not happen without that knowledge.”
Below are the top financial-related fears impacting the middle class, and solutions on how workers can keep their worries at a distance.
