A report by Primerica found that in the third quarter of 2025, just 21% of middle-income Americans believe they’ll be\u00a0better off financially<\/a> in the next year, while 34% believe they’ll be worse off and 33% expect their situation to remain the same.<\/p>\n Those figures are notably more pessimistic than the firm’s data from the third quarter of 2020 showed, when 33% of middle-income Americans thought they would be better off financially in the next year versus just 17% who thought they would be worse off and 40% expected they would be about the same.<\/p>\n “The inflation hangover doesn’t just tighten day-to-day budgets \u2013 it chips away at the financial foundation families work hard to build,” Primerica wrote. “For households already balancing tight budgets, even modest increases in essential costs can force tough decisions: tapping savings, adding to credit card debt or delaying retirement investments.”<\/p>\n VOTERS EXPRESS ECONOMIC WORRIES OVER INFLATION AS COSTS RISE, FOX NEWS POLL FINDS<\/strong><\/a><\/p>\n Primerica’s report found that middle-income Americans are suffering from an “inflation hangover” after several years of price hikes. (Getty Images)<\/p>\n The report noted the share of middle-income households rating their personal finances as “poor” or “not so good” has risen from 32.2% in the first quarter of 2021 to a peak of 55% in the third quarter 2024, while it was 45.5% in the third quarter of 2025.<\/p>\n It also noted that the share of respondents who said they pay off their\u00a0credit card balances<\/a> in full each month has declined significantly from about 47% in the first quarter of 2021 to 29% in the third quarter of 2025, despite inflation slowing from the highs reached in 2022.<\/p>\n DECEMBER INTEREST RATE CUT IN DOUBT AS FED MINUTES SHOW POLICYMAKERS DIVIDED<\/strong><\/a><\/p>\n Middle-income households are more pessimistic about their year-ahead financial outlook than they were five years ago. (iStock)<\/p>\n Data from Primerica’s Household Budget Index showed that\u00a0costs for necessities<\/a> like food, gas and utilities are outpacing the income growth of middle-income households, as the cost of necessities is up 32.7% since January 2021 \u2013 well above the 23.5% rise in middle-income wages over that period.<\/p>\n As households deal with financial challenges by doing things like deferring big purchases or investments,\u00a0tapping into savings<\/a> or adding to credit card debt, it can have a long-term impact as families look to get back on track in terms of their financial goals.<\/p>\n BESSENT WARNS ‘PERFECT STORM’ BREWING FOR BEEF PRICES, DETAILS TRUMP’S $2,000 PLAN FOR WORKING FAMILIES<\/strong><\/a><\/p>\n Household necessities have risen in price in recent years amid elevated inflation. (Justin Sullivan\/Getty Images)<\/p>\n “Postponing contributions to retirement accounts or scaling back savings doesn’t just lose ground in the moment \u2014 it creates a widening gap that becomes harder to close over time. Even if wage growth does begin to outpace inflation, the hole left by years of higher costs can’t be filled quickly,” Primerica said.<\/p>\n The report also surveyed middle-income households about what aspects of their finances are sources of stress at this time, and 55% of respondents said\u00a0inflation<\/a>, while 47% said they were concerned about being able to cover expenses from an emergency.<\/p>\n![\"Couple](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/11\/retirement.jpg\")
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