Despite current high cost of living, families
slightly more optimistic about future than year ago.
Primerica, Inc. (NYSE: PRI), a leading provider
of financial services in the United States and Canada, released the
Middle-Income Financial Security Monitor for the second quarter of
2023 — a national survey that measures changes in the sentiments of
middle-income families in the U.S. about their finances.
The survey found that families say they are increasingly racking
up credit card balances and debt. More than a third (36%) of
respondents used their credit card more in the past year, up five
percentage points compared to the June 2022 survey. Similarly, a
third (33%) noted their credit card debt increased over the past
year, up four percentage points in the same time frame.
Most respondents (71%) say their income continues to fall behind
the cost of living. About three-quarters (76%) are cutting back on
non-essential purchases, and nearly half (48%) are cutting back or
pausing saving for the future to make up the difference.
Those with lower financial security scores, however, are finding
the rising cost of living to be even more challenging, with more
than four-fifths (81%) in this category cutting back on
non-essentials and nearly three-quarters (72%) pausing saving for
the future.
Despite these challenges, middle-income Americans are slightly
more optimistic regarding their financial future compared to a year
ago. Looking ahead to a year from now, about a fifth (22%) say they
will be better off financially, up six percentage points since June
2022, and a quarter (26%) say they will be worse off, down 15
percentage points in the same time frame.
“Compounding inflation over multiple years is weighing heavily
on middle-income budgets,” said Glenn J. Williams, CEO of
Primerica. “Even as annual rates of inflation have eased, high
prices are still hurting budgets. This is driving increased credit
card use and higher monthly balances, indicating that families are
being forced to bridge the gap.”
Key Findings from Primerica’s U.S. Middle-Income Financial
Security Monitor
- Many find credit card debt difficult to manage. Among
those who are unable pay their full credit card balance each month,
a majority (61%) find managing this debt difficult, an increase of
three percentage points since the March 2023 survey.
- Families plan to spend less on summer vacation and
activities. Middle-income Americans are expressing caution when
it comes to summer expenses, with 43% planning to spend less than
last year and only 14% anticipating spending more. Of those who
plan to go on vacation, more than half say they will visit free
attractions (55%) and explore destinations close to home
(55%).
- Americans are uninterested in using AI tools for financial
tasks. The vast majority of middle-income households are not
interested in using AI for recommending a financial advisor or
consultant (83%), giving financial advice (82%), suggesting a
financial plan for retirement (81%) or selecting stocks or mutual
funds (78%).
“After a year and a half of relatively high inflation,
especially for food and energy expenses, middle-income households
are being financially stressed according to the survey,” said Amy
Crews Cutts, Primerica’s Consulting Economist.
“The continued strength in the labor market and easing inflation
are likely reasons for the stronger optimism about the coming year
in the most recent survey,” Cutts continued. “Economic data
continues to be stronger than economists expected, lowering the
probability that a recession will start this year. Respondents in
the Primerica survey indicate similarly that the worst seems to be
behind us.”
Topline Trends Data
Jun.
2023
Mar.
2023
Dec.
2022
Sep.
2022
Jun.
2022
Mar.
2022
Dec.
2021
Aug.
2021
Apr.
2021
How would you rate
the condition of your personal finances? (Reporting “Excellent” and
“Good” responses.)
Analysis:
Respondents’ rating about the condition of
their personal finances declined over the past year.
50%
52%
53%
53%
54%
60%
64%
65%
67%
Overall, would you
say your income is…? (Reporting “Falling behind the cost of living”
responses.)
Analysis:
Concern about meeting increased cost of
living remained steady.
71%
72%
72%
75%
75%
67%
68%
65%
56%
Do you have an
emergency fund that would cover an expense of $1,000 or more (for
example, if your car broke down or you had a large medical bill)?
(Reporting “Yes” responses.)
Analysis:
The percentage of Americans who have an
emergency fund that would cover an expense of $1,000 or more
increased slightly over the past three months.
61%
58%
59%
60%
61%
62%
60%
65%
66%
How would you rate
the economic health of your community? (Reporting “Not so good” and
“Poor” responses.)
Analysis:
The economic health of communities improved
by five percentage points from the March survey.
54%
59%
53%
55%
58%
52%
50%
54%
52%
How would you rate
your ability to save for the future? (Reporting “Not so good” and
“Poor” responses.)
Analysis:
More than 70% feel it will be difficult to
save for the future.
71%
73%
74%
73%
72%
66%
62%
63%
58%
In the past three
months, has your credit card debt…? (Reporting “Increased”
responses.)
Analysis:
Credit card debt remains steady from the last
survey.
33%
33%
39%
37%
29%
25%
28%
21%
18%
About Primerica’s Middle-Income Financial Security
Monitor
Polling was conducted online from June 6-9, 2023. Using Dynamic
Online Sampling, Change Research polled 1,729 adults nationwide
with incomes between $30,000 and $130,000. We increased the top
threshold from $100,000 to $130,000 for this poll. Comparisons to
previous data are with the $100,000 top threshold.
Post-stratification weights were made on gender, age, race,
education, and Census region to reflect the population of these
adults based on the five-year averages in the 2021 American
Community Survey published by the U.S. Census. The margin of error
is 2.8%.
About Primerica, Inc.
Primerica, Inc., is a leading provider of financial services to
middle-income households in North America. Independent licensed
representatives educate Primerica clients about how to better
prepare for a more secure financial future by assessing their needs
and providing appropriate solutions through term life insurance,
which we underwrite, and mutual funds, annuities and other
financial products, which we distribute primarily on behalf of
third parties. We insured over 5.7 million lives and had over 2.8
million client investment accounts on December 31, 2022. Primerica,
through its insurance company subsidiaries, was the #3 issuer of
Term Life insurance coverage in the United States and Canada in
2022. Primerica stock is included in the S&P MidCap 400 and the
Russell 1000 stock indices and is traded on The New York Stock
Exchange under the symbol “PRI”.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230711542602/en/
Public Relations Gana Ahn, 678-431-9266
gana.ahn@primerica.com Investor Relations Nicole Russell,
470-564-6663 nicole.russell@primerica.com
Primerica (NYSE:PRI)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Primerica (NYSE:PRI)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024