In the face of the Covid-19 pandemic, most middle-income families in the U.S. are positive about their current financial situation, but many are worried about the future, a recent study shows.
Around 64% of middle-income individuals surveyed by financial services company Primerica rate their current personal finances positively.
Nevertheless, 50% of those surveyed report that their income is falling behind the cost of living, and just 31% believe they can save for a comfortable retirement.
“Middle-income families are taking steps to save for the future and protect their assets, despite facing challenging economic times,” Primerica CEO Glenn Williams says about the findings. “Overall, they remain positive about their finances, which is a testament to their resiliency. "
Primerica based the study on an online survey, conducted by the polling firm Change Research, from September 25 to 28 among 837 adults across the country.
The survey, the Middle-Income Financial Security Monitor, is a quarterly national poll to monitor the financial health of those with annual household incomes of $30,000 to $100,000.
The respondents were also asked about their financial knowledge.
Generally, individuals who are already working with financial professionals were more confident than those without professional help.
More than 80% of the respondents who are already working with financial professionals said they are confident about what to do with financial fundamentals like building good credit, budgeting and saving, according to the survey.
However, fewer respondents who are already working with financial professionals said they are confident in more complex financial matters like setting up an Individual Retirement Account (according to 65% of the respondents), buying life insurance (64%), and investing in stocks (50%).
Do you have a news tip you’d like to share with FA-IQ? Email us at firstname.lastname@example.org.