A recent LIMRA study has found that 57 percent of middle-market American households are not saving regularly. This number jumps to 69 percent for households with children who are under 18 years old.
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
- Develop/follow a budget.
Yet half of these households surveyed by LIMRA say they would need to borrow to cover a $5,000 emergency, and one third have non-mortgage debt of $25,000 or more.
The good news, LIMRA notes, is that three quarters of middle-market households seem to understand that they need help and are interested in learning about savings options or 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, according to LIMRA. Prior LIMRA 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 to buy the life insurance they say they need.
By Ayo Mseka