A new LIMRA study found that 57 percent of middle market American households are not saving regularly — this jumps to 69 percent for households with children under 18.
According to the survey, the top five financial goals of middle market households are:
- Saving enough for a comfortable retirement;
- Building an emergency fund;
- Paying off/reducing debt;
- Maintaining/achieving a good credit score; and
- Develop/follow a budget.
Yet half of these households say they would need to borrow to cover a $5000 emergency and one third have non-mortgage debt of $25,000 or more.
The good news is, three quarters of middle market households seem to understand they need help and are interested in learning savings options/strategies. For Generation Y households and those with children under 18, the number jumps to over 80 percent.
This is an opportunity for advisors and companies looking to connect with the middle market. Prior research has shown that consumers who say they need life insurance but don't buy often say they can't afford it. Offering these consumers savings strategies could help them get to a place where they will feel comfortable enough buying the life insurance they say they need.
LIMRA members can learn more about this study by visiting: U.S. Consumers Today: The Middle Market. Non-members are encouraged to contact LIMRA Public Relations for more details.