Primerica Survey Reveals Middle-Income Americans Struggling as Income Lags Behind Rising Costs
Advisors Capital senior portfolio manager Gus Scacco shares his outlook for Q4 on The Claman Countdown.
Middle-income Americans are facing ongoing financial challenges, with many reporting that their income is not keeping pace with the rising cost of living. This insight comes from a recent analysis by Primerica.
On Thursday, Primerica released its latest edition of the U.S. Middle-Income Financial Security Monitor quarterly survey, revealing that 68% of middle-income Americans feel their income is lagging behind living costs. This statistic has remained consistent over the past two years.
The survey further indicated that 49% of middle-income families identified their primary financial goal for the upcoming year as simply keeping up with rising costs, suggesting a lack of anticipated relief in the near future.
In an interview with FOX Business, Primerica CEO Glenn J. Williams stated, “As you might expect after a number of years of this pressure, the attitudes of middle-income families have kind of leveled out – they’re not getting worse, but they certainly haven’t turned and aren’t getting significantly better yet.”
HOW AMERICANS COULD GET A $1,000 BOOST THIS TAX SEASON
Middle-income Americans are prioritizing keeping pace with rising costs as they deal with the impact of several years of rising costs, Primerica found. (Spencer Platt/Getty Images)
“Many of them are in a deficit position; they’ve either used savings or credit cards to fill the gap,” Williams noted. He emphasized that even if cost pressures ease and wages begin to outpace price increases, families may not feel the benefits immediately due to existing credit card debt and the need to rebuild savings.
Finding leftover funds in the budget to save for not only big-ticket purchases like homes or cars but also for an emergency savings fund remains a challenge.
According to Primerica’s survey, 70% of middle-income households reported that their ability to save for the future is “not so good” or “poor.” This figure has seen a slight decrease from 73% in the previous quarter but has remained relatively unchanged since the end of 2023.
HERE’S HOW MUCH TRUMP ACCOUNT BALANCES COULD GROW OVER TIME
Williams said the rising cost of everyday goods strained middle-income budgets in recent years. ( Stephanie Keith/Bloomberg via Getty Images)
“We still see a significant group managing their monthly finances by saying if I need a new washing machine or a new car, I’m just going to have to delay that because I can’t afford it right now,” he explained.
“Quite frankly, that’s probably the right thing to do,” Williams added. “If you can have some delayed gratification, you can wait on those purchases until you’ve got more breathing room. So while it’s unfortunate that they have to do that, that’s actually a pretty good response to financial pressure.”
The percentage of respondents who reported having an emergency fund capable of covering an expense of $1,000 or more increased slightly from 58% to 62% over the past year, although this figure remains below the 64% reported in the first quarter of 2025.
NEW TAX DEDUCTION COULD PUT MORE MONEY BACK IN SENIORS’ POCKETS THIS YEAR
Some middle-income Americans have deferred significant purchases to rebuild their finances after the cost pressures of recent years. (Joe Raedle/Getty Images)
“As Americans, we’re chronic under-savers compared to citizens of other countries – we tend to live closer to the edge,” Williams remarked. “We are seeing people start to rebuild a little bit and get back to where they were.”
“I wouldn’t say $1,000 is enough for an emergency fund for most families, but it’s a nice start,” he explained. “One of the things that has been our kind of fundamental advice for over 49 years is that you need to build an emergency fund that’s at least six months of income if you can. That’s very difficult for most middle-income families, but it’s a good goal.”
Interestingly, the survey also found that the percentage of middle-income Americans who expect the economy to worsen over the next year has decreased to 59% from 63% in the previous quarter, significantly lower than the peak of 76% recorded in March 2025.
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Williams noted that potential increases in take-home pay in 2026 could provide some relief for middle-income Americans, possibly “putting a few extra dollars in their pockets” as last year’s tax reforms take effect.
Advisors Capital senior portfolio manager Gus Scacco shares his outlook for Q4 on The Claman Countdown.
Middle-income Americans are facing ongoing financial challenges, with many reporting that their income is not keeping pace with the rising cost of living. This insight comes from a recent analysis by Primerica.
On Thursday, Primerica released its latest edition of the U.S. Middle-Income Financial Security Monitor quarterly survey, revealing that 68% of middle-income Americans feel their income is lagging behind living costs. This statistic has remained consistent over the past two years.
The survey further indicated that 49% of middle-income families identified their primary financial goal for the upcoming year as simply keeping up with rising costs, suggesting a lack of anticipated relief in the near future.
In an interview with FOX Business, Primerica CEO Glenn J. Williams stated, “As you might expect after a number of years of this pressure, the attitudes of middle-income families have kind of leveled out – they’re not getting worse, but they certainly haven’t turned and aren’t getting significantly better yet.”
HOW AMERICANS COULD GET A $1,000 BOOST THIS TAX SEASON
Middle-income Americans are prioritizing keeping pace with rising costs as they deal with the impact of several years of rising costs, Primerica found. (Spencer Platt/Getty Images)
“Many of them are in a deficit position; they’ve either used savings or credit cards to fill the gap,” Williams noted. He emphasized that even if cost pressures ease and wages begin to outpace price increases, families may not feel the benefits immediately due to existing credit card debt and the need to rebuild savings.
Finding leftover funds in the budget to save for not only big-ticket purchases like homes or cars but also for an emergency savings fund remains a challenge.
According to Primerica’s survey, 70% of middle-income households reported that their ability to save for the future is “not so good” or “poor.” This figure has seen a slight decrease from 73% in the previous quarter but has remained relatively unchanged since the end of 2023.
HERE’S HOW MUCH TRUMP ACCOUNT BALANCES COULD GROW OVER TIME
Williams said the rising cost of everyday goods strained middle-income budgets in recent years. ( Stephanie Keith/Bloomberg via Getty Images)
“We still see a significant group managing their monthly finances by saying if I need a new washing machine or a new car, I’m just going to have to delay that because I can’t afford it right now,” he explained.
“Quite frankly, that’s probably the right thing to do,” Williams added. “If you can have some delayed gratification, you can wait on those purchases until you’ve got more breathing room. So while it’s unfortunate that they have to do that, that’s actually a pretty good response to financial pressure.”
The percentage of respondents who reported having an emergency fund capable of covering an expense of $1,000 or more increased slightly from 58% to 62% over the past year, although this figure remains below the 64% reported in the first quarter of 2025.
NEW TAX DEDUCTION COULD PUT MORE MONEY BACK IN SENIORS’ POCKETS THIS YEAR
Some middle-income Americans have deferred significant purchases to rebuild their finances after the cost pressures of recent years. (Joe Raedle/Getty Images)
“As Americans, we’re chronic under-savers compared to citizens of other countries – we tend to live closer to the edge,” Williams remarked. “We are seeing people start to rebuild a little bit and get back to where they were.”
“I wouldn’t say $1,000 is enough for an emergency fund for most families, but it’s a nice start,” he explained. “One of the things that has been our kind of fundamental advice for over 49 years is that you need to build an emergency fund that’s at least six months of income if you can. That’s very difficult for most middle-income families, but it’s a good goal.”
Interestingly, the survey also found that the percentage of middle-income Americans who expect the economy to worsen over the next year has decreased to 59% from 63% in the previous quarter, significantly lower than the peak of 76% recorded in March 2025.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Williams noted that potential increases in take-home pay in 2026 could provide some relief for middle-income Americans, possibly “putting a few extra dollars in their pockets” as last year’s tax reforms take effect.
