WASHINGTON – The American Council of Life Insurers (ACLI) today released its April 2025 Financial Resilience Index measuring middle-class households’ ability to manage financial challenges and plan for a stable future. The Index analyzes key middle-class economic considerations to assess the direction and degree of change in middle-class financial resilience, analyzing the interplay between typical cost pressures for middle-class households and the resources available to meet those costs – including income, access to credit and retirement assets.

The April Index results show that as inflation inches back towards historical norms, stubbornly elevated housing costs continue to drive cost pressure on the middle class. Additionally, the Index found:

• Income levels and retirement readiness remained high for the middle class compared to historical norms, but dipped in Q4 2024.
• Wage growth was still well above average but was clearly and consistently falling from its peak in early 2023.
• Retirement assets and non-retirement wealth slowed in growth, and there was an increase in the share of middle-class households expecting to miss debt payments – an expectation that indicates uncertainty amongst consumers.

April 2025 Financial Resilience Index Report

In Q4 2024, the Headline Index – the score used to measure household resilience – was 19.2, down 13 points from the previous quarter and down 8 points from Q4 last year. This indicates that, although middle-class financial resilience was still relatively strong, gains were moderating.

Softening wage growth, slower asset growth, and concerns around debt delinquencies resulted in the lowest Resource Resilience score since Q4 2020. However, the score is still solidly positive; the Q4 2024 decline can be understood as resource resilience coming back down toward historical norms after several quarters of very strong growth.

“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, housing costs didn’t come down at the same pace and kept cost of living high. While costs of care and education edged down and were reflective of historical norms, childcare remained a challenge and financial burden for middle-class families.”

The Financial Resilience Index’s accompanying survey – a nationally representative survey conducted quarterly by The Harris Poll – gives a snapshot of how middle-class households are feeling about the state of their finances. The survey explores middle-class respondents’ confidence in their retirement savings and age at which middle-class respondents hope to retire.

Key findings reveal that one-third (33%) of middle-class respondents are either not confident or not sure they will have enough retirement savings – additionally, middle-aged respondents reported less confidence about their retirement savings than their younger and older counterparts.

Moreover, 40% of 50-64 year old middle-class respondents, and 38% of the 35-49 year-old age group, are either not confident or not sure they will have enough retirement savings, compared to just over a quarter of the 18-34 year olds and 65+ age group (27% and 28%, respectively). The  50-64 age group  – those closest to nearing retirement – are significantly less likely to be very confident about their retirement savings than every other age group (9% vs. 23% for those 18-34; 19% for those 35-49; and 21% for those 65+).

In general, the survey found that middle-class respondents’ hopes for retirement closely mirror those reported by upper-income respondents. More than half of middle-class and upper-income respondents hope to retire at 65 or younger (54% for both groups). More differences were found between middle-class and lower-income responses. Middle-class respondents were more likely to hope to retire after 65 than lower-income respondents (37% compared to 27%).

“A sizable share of the middle class continues to lack confidence about having enough retirement savings to live comfortably through their retirement years, especially those quickly approaching retirement,” said ACLI President & CEO David Chavern. “The findings reinforce the importance of dedicated savings for retirement. It’s a core mission of life insurers to increase financial education around retirement preparedness, particularly for middle-class Americans who are often uniquely exposed to economic fluctuations.”

About the Financial Resilience Index

ACLI’s Financial Resilience Index, which is released quarterly, measures the middle-class’ ability to manage life’s challenges and plan for a stable future. The index tracks 26 different variables that represent typical cost pressures for middle-class households (like housing, gas and childcare) and the financial resources that are available to meet them (like income, access to credit and retirement assets). By tracking the direction and magnitude of cost pressures and resources, the index reflects how middle-class financial resilience changes over time, and what is driving improvement or decline.

About the Financial Resilience Survey

ACLI’s Financial Resilience Survey is a nationally representative survey conducted by The Harris Poll on behalf of ACLI, as a complement to the Financial Resilience Index. The survey explores how middle-class respondents understand their own financial resilience by asking questions about economic mobility, financial stressors, financial stability, and safety nets. The quarterly survey consists of two questions about financial resilience, one recurring question that will be asked at the same time each year and one that will vary within the larger theme of middle-class financial health, stress, and resilience. Respondents of all household income levels respond to the survey, with reporting focused on middle-class respondents – those earning $50,000-$150,000 in annual household income.

ACLI’s latest Financial Resilience Survey was conducted online within the United States by The Harris Poll on behalf of ACLI from March 11 – 13, 2025 among 2,092 adults ages 18 and older. The survey sample includes 1,057 respondents from middle-class households. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact ACLI.

For more information about both the index and the survey please visit: Financial Resilience Index.

About ACLI

The American Council of Life Insurers (ACLI) is the leading trade association driving public policy and advocacy on behalf of the life insurance industry. 90 million American families rely on the life insurance industry for financial protection and retirement security. ACLI’s member companies are dedicated to protecting consumers’ financial wellbeing through life insurance, annuities, retirement plans, long-term care insurance, disability income insurance, reinsurance, and dental, vision and other supplemental benefits. ACLI’s 275 member companies represent 93 percent of industry assets in the United States.