Middle-Income Americans Report Personal Finance Optimism: TruStage Survey

Ninety-two percent of American households making between $50,000 and $150,000 per year are able to cover their monthly expenses and 55% are tucking away some portion of their income into savings, according to a new survey from TruStage.

What’s more, 71% of survey respondents in the middle-income bracket – referred to as middle-market Americans by the Madison, Wis.-based insurance, investment and technology provider – said their financial situation is good, while 37% said it is improving. And, younger generations were more likely to report an improving financial situation, with 61% of Gen Zers, 49% of millennials, 33% of Gen Xers and 26% of boomers stating their personal financial situation is on the upswing.

The TruStage 2024 Middle Market Survey, which included 1,500 participants, also revealed some concerning trends regarding these Americans’ savings levels, retirement preparedness, outlook on the U.S. economy and perceptions of financial advisor costs.

While 85% of survey respondents reported having at least $10,000 in retirement funds per household, with exactly half reporting to have at least $100,000 per household, 43% of those who are not yet retired said they don’t feel prepared for retirement. The concern is especially pronounced for women – half of the female survey respondents who are not yet retired said they don’t feel prepared.

Also raising concern was respondents’ feelings about the U.S. economy and how that has impacted their savings habits. Sixty-one percent of middle-market Americans said they feel the economy is on the wrong track, and more than half of respondents reported saving less because of rising inflation (59%) and higher taxes (51%).

And, when asked if they had met with a financial advisor or other financial professional, only 46% said they had done so at least once; that number is even lower for African Americans (44%), women (43%) and millennials (41%). One-third of survey respondents – and 38% of female respondents – cited their belief that advisors are too expensive as the reason why they had not met with one.

“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,” TruStage CEO Terrance Williams stated. “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.”

Other results from the survey included the following:

• Respondents were most concerned about rising inflation (87%), higher taxes (84%) and the upcoming Presidential election (81%). Despite these concerns, only 38% have taken steps to prepare for higher inflation. Another 30% have taken steps to prepare for a possible recession and 29% for higher taxes.
• Three in four respondents have debt and 42% have at least $10,000 in debt, excluding mortgages (student loans, credit card debt, medical debt, etc.).
• Three in five respondents would need to dip into savings to pay an unexpected $1,000 expense, and 28% would need to put that amount on one or more credit cards.
• Insurance (home, health, auto, life, etc.) was ranked the most accessible financial product, followed by investment accounts, with 92% and 78% finding these services accessible. Seventy-two percent of respondents believe financial advisors are accessible.