How is middle-class America holding up financially as headwinds continue to blow?

Middle-class Americans are holding up well financially, despite the multiple challenges thrown at them, but pressure still remains.

The American Council of Life Insurers has released its October 2025 Financial Resilience Index this week, measuring how well middle-income households manage financial challenges and plan for long-term stability. The index has now remained in positive territory for eight consecutive quarters.

But while the report points to continued strength in overall resource resilience, it also highlights growing anxiety among households facing lingering inflation and tighter budgets.

According to the latest data, the Headline Index, the key measure of overall financial resilience, stood at 7.3 in Q2 2025, rising two points from the previous quarter but still 21 points lower than a year ago. This performance indicates resilience remains slightly above the historical norm, though progress has leveled off.

Survey insights from the accompanying YouGov poll, which captures middle-class sentiment nationwide, reveal deepening financial unease. Half of all respondents (50%) said they worry about affording daily essentials in the coming year, and 41% indicated they would need to borrow or take on debt to handle an unexpected $5,000 expense.

“While the stability of the Financial Resilience Index is a positive sign for people’s overall economic well-being, many middle-class families still struggle with unexpected expenses,” says ACLI President & CEO David Chavern. “The guidance, products, and tools life insurers offer protect Americans from these and other challenges to their financial futures.”

The ACLI noted that resource resilience which includes factors such as income, access to credit, and retirement savings, remains above historical averages, though gains have moderated over the past year. Meanwhile, cost pressures, while easing from their pandemic-era peaks, are still elevated as inflation continues to run slightly higher than traditional benchmarks.

The index, published quarterly, tracks 26 key variables tied to household expenses including housing, fuel, and childcare, and compares them to available financial resources such as income and savings. By monitoring both pressures and resources, it offers a snapshot of how economic shifts affect the middle class’s financial durability over time.