Resilience vs. Risk – Middle Class Financial Tension

Man at kitchen counter stressed looking at bills.

The latest ACLI Financial Resilience Index highlights the tension that many middle-class households face.

The July Index shows that while stock market fluctuations since year-end 2024 caused middle-class households’ resources to drop, their overall financial resilience has remained stronger than the 21st century average for nearly two straight years.

Despite this resilience, middle-class households remain quite concerned about their financial future. According to a YouGov survey accompanying the July Index, more than half (55%) of middle-class households are at least somewhat concerned about the risk of a serious decline in their financial situation. Nearly half are not confident they will be able to build sufficient retirement savings, while four-in-10 lack confidence they will be financially protected should they face a major medical expense, the need for long-term care or the unexpected death of an income-earner.

Many middle-class households are walking a financial tightrope where one unexpected event, like a job loss or major expense, could throw their stability into question. They often lack the financial cushion available to higher-income families, yet their income and asset levels place them outside the reach of government safety net programs designed for lower-income households. This gap can create a deep sense of financial vulnerability.

It’s no wonder that many middle-class households turn to life insurers to provide them with financial security. Half of households with a life insurance policy make less than $89,000 per year, and the median income of a household with an annuity is $76,000. So, whether a middle-class family is concerned about running out of retirement savings, paying for medical treatment or long-term care or financial hardship after the death of a loved one, America’s life insurers absorb that risk and provide peace of mind through products and resources that strengthen financial and retirement security.

David Chavern

David Chavern is President and CEO of the American Council of Life Insurers (ACLI) whose mission is to provide financial certainty to Americans regardless of where and how they work, their life stage, or the economic status of their household. ACLI’s 275 member companies represent 93 percent of industry assets and provide financial security products and services to 90 million families.