TruStage Survey Reveals Mixed Financial Confidence Among U.S. Middle-Market Consumers

Financial Confidence vs. Economic Concern

A recent survey by TruStage has revealed intriguing insights into the financial landscape of middle-market consumers in the United States. Defined as households earning between $55,000 and $160,000, this demographic displayed notable confidence in their financial situations, with three-quarters labeling their conditions as "good." Additionally, a significant 73% of respondents maintained that the "American Dream" remains achievable.

However, beneath this seemingly optimistic surface lies a more concerning reality. While many individuals express positive sentiments about their personal finances, overwhelming economic challenges, such as inflation and high debt levels, continue to weigh heavily on their overall well-being. According to Terrance Williams, the CEO of TruStage, the disparity in confidence among different demographics is particularly alarming.

Key Findings from the Survey

The survey conducted by HarrisX, which sampled over 1,500 middle-market American adults, highlighted several key findings:

1. Gender Gap in Financial Confidence: The survey revealed a stark contrast in financial optimism between genders. While 76% of all respondents rated their financial situation positively, only 64% of women and 67% of Gen X members shared the same view. This difference underscores a significant gap that needs addressing, especially since 33% of women felt their financial situation was poor compared to 15% of men.

2. Financial Stress and Well-Being: The report indicated that financial stress is adversely affecting individuals' mental and physical health, with 56% noting a negative impact due to financial pressures. Strikingly, 72% of Gen Z respondents (ages 22-28) reported similar feelings, underscoring the urgency to address these trends.

3. Inflation's Impact: Nearly 87% of participants cited inflation as their primary financial concern, with many reporting an increase in spending and a decrease in savings. These trends raise alarms regarding future retirement readiness among consumers who are already feeling the economic pinch.

4. Embracing Technology for Financial Guidance: There has been a noticeable shift towards using digital tools and trusted sources for financial advice, where 91% of respondents rely on search engines, while only 19% currently utilize social media for financial guidance. This shift suggests a growing need to innovate how financial advice is delivered.

Implications for Financial Institutions

As more middle-market consumers begin to save for retirement—78% in 2025 compared to 73% in 2024—it has become evident that financial institutions have a critical role to play. With many individuals reporting less than $100,000 saved for retirement, the necessity for guidance and support in retirement planning has never been greater. Williams emphasizes that financial institutions must meet consumers where they are, particularly as they adapt to the growing reliance on technology for financial decision-making.

Conclusion

Overall, the insights garnered from the TruStage survey reveal a complex landscape of financial confidence among middle-market consumers. The optimism displayed by many is counterbalanced by the serious economic concerns they face. As financial institutions aim to bridge the confidence and preparedness gap, they must harness innovative technological solutions while maintaining the trusted human connections that consumers value. Failure to do so could leave many individuals struggling to navigate the increasingly challenging economic environment ahead.

For further information, you can download the full report from the TruStage website.