Middle-Market Americans Remain Hopeful Despite Growing Financial Strain

A national survey of 1,532 U.S. adults in the middle market—defined as those with household incomes between $55,000 and $160,000—reveals a complex financial picture. Many respondents to TruStage Financial Group Inc.’s June survey remained cautiously optimistic, but their responses showed deepening financial stress, which was unevenly distributed.

While 76% of respondents rated their financial situation as “good” and 73% still said they believe the American Dream is within reach, that optimism masked significant vulnerabilities. Inflation, debt and economic anxiety are quietly reshaping financial behaviors and eroding long-term confidence.

Financial Confidence Is Not Shared Equally

Confidence gaps were most pronounced among women and Generation X respondents (aged 45 to 60), with just 64% and 67%, respectively, rating their finances as “good”—well below the overall average of 76%. These disparities underscore the need for more targeted financial guidance and support.

Despite overall optimism in 2025, financial stress is taking a toll on key groups. More than half of middle-market respondents reported that financial stress negatively impacted their well-being, including 72% of Generation Z, 63% of Millennials, 66% of African Americans and 56% of women.

“While the 2025 data paints a hopeful personal finance picture for many middle-market Americans, there are troubling trends beneath the surface,” TruStage CEO Terrance Williams said in a statement. “A concerning number of individuals—especially younger consumers, women and Black Americans—report that financial stress is impacting their mental and physical health. This is a clear signal that our industry must do more to support their financial well-being.”

Inflation Driving Mixed Financial Behaviors

Inflation remained the most common concern, cited by 87% of respondents, and was the leading driver of financial stress, reported by 56% of survey participants. Among those feeling the most strain, 60% said they were spending more and saving less, putting both emergency funds and long-term goals like retirement at risk.

For a hypothetical $1,000 emergency, 29% of respondents said they would rely on one or more credit cards, 17% said they would seek additional work hours and 16% said they would turn to friends or family for a loan.

Retirement savings participation was up slightly—78% in 2025, compared with 73% in 2024—but progress remained fragile. Fewer than half of respondents—48%—had saved less than $100,000, and only 29% said they felt very confident in their retirement decisions.

The data revealed a growing disconnect between action and confidence—a pattern also reflected in the latest IRALogix retirement index, which showed surface-level stability hiding deeper issues in planning and financial preparedness.

Balancing Innovation With Familiar Financial Habits

Despite rising financial stress, core behaviors like budgeting, saving and expense tracking remain common. Engagement with financial advisers was growing, but many—particularly women and younger adults—still face barriers such as cost and trust.

Financial literacy gaps remain wide: Nearly half of respondents reported lacking access to financial education resources, even though most said they wanted their financial institutions to help close that knowledge gap.

According to the data, interest in digital tools grew, particularly in artificial-intelligence-driven services like ChatGPT. While cash-back apps and human advisers led in current usage, many respondents remained cautious, waiting for newer technologies to mature and gain broader acceptance.

In terms of trusted financial advice, survey respondents said they still relied on non-adviser sources:

• 93% said they trusted family and friends;
• 91% said they used search engines; and
• 90% said they turned to digital news outlets.

Although only 19% reported using social media for financial advice, trust in these platforms surged—rising to 83% from 67% in just one year—signaling increased openness to digital and community-driven guidance.