Middle Class Financial Resilience Perseveres Despite Cost Pressures, Finds New ACLI Financial Resilience Index

WASHINGTON - The American Council of Life Insurers (ACLI) today unveiled the results of its January 2026 Financial Resilience Index, which measures middle-class households' abilities to manage financial challenges and plan for a stable future.

The January index, which looks at data from the third quarter of 2025, found that middle-class financial resilience is edging closer to its historical average. Middle-class households are facing worsening cost pressures for the first time in over two years, though strong resource growth has kept the index in positive territory.

The Financial Resilience Index's accompanying survey, a nationally representative survey conducted by YouGov, found that middle-class households are increasingly sensitive to these cost shifts. Almost half (42%) of middle-class households are not confident that they could pay an unexpected expense of $5,000 and bounce back financially.

Despite these pressures, middle-class households are taking some steps to improve or maintain financial stability, but there is room for improvement. Only half (52%) of middle-class households are putting money into a savings account. And, many households remain underinsured, with survey respondents noting that those with children under 18 are no more likely than other middle-class households to say they maintain life insurance coverage (33% vs. 31%).

January 2026 Financial Resilience Index Report

The index also found that:

• Inflation is once again pressuring household finances, with above-average price increases across a range of goods and services dragging on overall resilience.
• Cost resilience is in essentially the same place as it was a year ago. While "essentials" have stabilized, inflation for "Modest Luxuries" has started to accelerate.
• Resource resilience remains relatively unchanged but continues to trend above historical norms. Middle-class households continue to benefit from resource growth that is solidly above historical averages, which has helped households absorb rising costs.
• Middle-class households were slightly more upbeat about retirement, with more households believing in the likelihood of a comfortable retirement.

The Headline Index - the score used to measure households' overall financial resilience - was 6.5 in Q3 2025, down three points from the previous quarter and down 25 points from the same period last year. A positive score indicates that resilience is better than the long-term historical average; however, the recent decline suggests that the significant gains seen in 2023 and 2024 are leveling off as economic headwinds shift.

"While it is encouraging that middle-class financial resilience continues to exceed historical averages, the emergence of new cost pressures is a development that warrants close attention," said ACLI President & CEO David Chavern. "The data makes clear that, even with stable resources, families are feeling the impact of rising costs for goods and services and examining every expense - expected and unexpected. The protection life insurers provide helps ease families' concerns about their financial futures, allowing them to concentrate on household priorities during periods of financial uncertainty."

About the Financial Resilience Index

ACLI's Financial Resilience Index, which is released quarterly, measures the ability of the middle-class 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 YouGov 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 YouGov on behalf of ACLI from December 15 - 18, 2025 among 3,742 adults ages 18 and older. The survey sample includes 1,442 respondents from middle-class households as well as 1,498 respondents from lower-income households and 333 respondents from upper-income households. The report and related materials only highlight comparisons between subgroups that are statistically significant. 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.

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