Middle-Market Americans Feel Good about their Finances Despite Economic Concerns According to New TruStage™ Survey

Attitudes Split Among Generations with Younger Americans More Likely to Say Their Financial Situation is Getting Better

MADISON, Wis., Aug. 15, 2024 /PRNewswire/ -- Middle-market Americans feel positive about their personal finances and are optimistic about the future, with a vast majority (92%) reporting they can cover their monthly expenses and more than half (55%) putting at least some money towards savings. Additionally, 71% of middle-market Americans report their financial situation is good, and another 37% say it improving. The number reporting their financial situation is improving jumps to 61% for Gen Z Americans and 49% for Millennials but drops to 33% for Gen X and 26% for Boomers.

This is according to the latest research from TruStage, an insurance, investment and technology provider that has protected 37 million consumers across the United States. While the research, titled the TruStage 2024 Middle Market Survey, found several causes for optimism, it also unearthed some concerning trends regarding financial preparedness, outlooks on the U.S. economy and savings levels.

"The middle market has been historically underserved by the financial services industry. At TruStage, we are focused on better understanding their needs, challenges and expectations. Part of this means ensuring they have access to the information, tools and solutions to feel confident in their financial decisions and are prepared for the unexpected," commented Terrance Williams, CEO of TruStage.

Key findings from the survey include:

1. Many middle-market Americans are on track for retirement savings but still, 43% of those not yet retired do not feel prepared for retirement. Most (85%) survey respondents reported having at least $10,000 in retirement funds per household, and exactly half reported having at least $100,000 per household.
   1. Despite this, the survey shows a concerning trend in retirement preparedness – especially for women, where exactly half of those not yet retired do not feel prepared for retirement. This represents a tremendous opportunity for financial services companies to support these individuals by providing education and resources to build confidence in their retirement plans.
2. Nearly two-thirds (61%) of middle-market Americans feel the economy is on the wrong track. Respondents are 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. 
3. These financial concerns are having a negative impact on the savings of middle-market Americans. More than half of respondents report saving less because of rising inflation (59%) and higher taxes (51%.) In addition, three-in-four Americans have debt and 42% have at least $10,000 in debt (i.e. student loans, credit card debt, medical debt, etc., excludes mortgages) according to the survey. Further, three-in-five middle market Americans today (58%) would need to dip into savings to pay an unexpected $1,000 expense and nearly one-third (28%) would need to put that amount on one or more credit cards.

Accessibility in Financial Services Makes Strides, but Negative Price Perceptions Remain

The survey also delved into the lack of support many middle-market Americans feel in terms of working with financial advisors and other financial professionals. Just under half (46%) report that they've met at least once with a financial advisor. This number drops to 44% for African Americans, 43% for women, and 41% for Millennials.

There is a perception of high costs associated with financial advisors – with one-third of respondents who haven't met with a financial advisor citing their belief that advisors are too expensive as the reason. This number jumps to 38% for women.

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. 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. 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," added Williams.  

The survey, which sampled 1,500 American adults with a household income between $50,000-$150,000, focused on the middle market and their perceptions of the U.S. economy, as well as their own financial habits and plans for the future.

About TruStage

TruStage is a financially strong insurance, investment and technology provider, built on the philosophy of people helping people. We believe a brighter financial future should be accessible to everyone, and our products and solutions help people confidently make financial decisions that work for them at every stage of life. With a culture rooted and focused on creating a more equitable society and financial system, we are deeply committed to giving back to our communities to improve the lives of those we serve. For more information, visit www.trustage.com.

TruStage™ is the marketing name for TruStage Financial Group, Inc. its subsidiaries and affiliates. Corporate headquarters are located in Madison, Wis.

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SOURCE TruStage