Resilience vs. Uncertainty

Jan 29, 2025
Entrepreneur father working from home on laptop and holding baby.

New data from ACLI’s Financial Resilience Index offers fresh insights into the financial health of America’s middle class. The January 2025 Index reveals both gains and challenges, highlighting the complex financial reality for these households.

The good news? Many middle-class families have seen their income and resources grow, with strong stock market gains boosting wealth and retirement savings. This resilience has helped them navigate above-average inflation in recent years, especially in housing and childcare costs.

However, the data also underscores disparities. Far fewer middle-class parents (43%) are confident they could bounce back from an unexpected expense of $5,000 than middle-class households without children (56%). And middle-class households with children are much more likely to have less than 1 month of living expenses in easy-to-access savings (28%), than childless middle-class households (16%).

These findings reinforce the middle class’s unique vulnerability: they’re too prosperous for government safety nets but lack the financial cushion of wealthier households.

This dilemma is where the life insurance industry steps in. For over 175 years, we’ve been helping middle-class Americans plan for tomorrow, so they can live confidently today. No matter their age, location, gender or race, our policyholders can count on us to be there in good times and bad. And not just with life insurance. Life insurers provide annuities, disability income insurance, paid family and medical leave, supplemental benefits and more that Americans and businesses depend on for financial certainty in an uncertain world.

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.