The American Council of Life Insurers (ACLI) has released its April 2025 Financial Resilience Index, which evaluates the ability of middle-class households to manage financial challenges and plan for a stable future. The index examines key economic factors affecting the middle class, such as income, access to credit, and retirement assets.
According to the latest results, inflation is nearing historical norms, but high housing costs continue to exert pressure on middle-class finances. Income levels and retirement readiness remained above historical averages but declined in the fourth quarter of 2024. Wage growth was above average but showed a consistent decline from early 2023 peaks. Additionally, there was a slowdown in the growth of retirement assets and non-retirement wealth, alongside an increase in households expecting to miss debt payments.
The Headline Index score for Q4 2024 was 19.2, reflecting a decrease from previous quarters but still indicating relatively strong financial resilience among middle-class families. "As inflation has cooled, cost pressures did not weigh on middle-class American families in Q4 2024 as intensely as they did a year prior," said ACLI Chief Economist Andrew Melnyk. However, he noted that housing costs remained high.
A survey accompanying the index conducted by The Harris Poll revealed that one-third of middle-class respondents are uncertain about having sufficient retirement savings. Middle-aged respondents expressed less confidence compared to younger and older age groups. Notably, those aged 50-64 were significantly less confident about their retirement savings than other age groups.
ACLI President & CEO David Chavern emphasized the importance of dedicated savings for retirement: "A sizable share of the middle class continues to lack confidence about having enough retirement savings to live comfortably through their retirement years."
The Financial Resilience Index is updated quarterly and tracks various variables representing typical cost pressures and available financial resources for middle-class households. The accompanying survey provides insights into how these households perceive their financial resilience.
For more information on both the index and survey, visit ACLI's website.
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