With nearly three fourths of all middle-market households in the workforce and actively saving for retirement, a real growth opportunity exists for financial firms and advisors, according to the LIMRA Secure Retirement Institute (LIMRA SRI).
One key recommendation encourages companies to grow long-term relationships with the middle-market. Characteristics of the middle market include:
The middle-market wealth segment is defined as household assets from $100,000 to $249,000 and make up 13 million households or 11 percent of total U.S. households.
More than 80 percent of middle-market households have assets in a retirement plan or an IRA. Three in 10 own cash value life insurance.
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Collectively, middle-market households own $2.1 trillion in financial assets with an average net worth of $447,500 and financial assets averaging $160,900.
While 28 percent (3.7 million households) are fully or partially retired, the remaining 72 percent (7.8 million households) are not retired and are expected to remain economically productive for a long time. Consisting of leading-edge and trailing-edge Boomers (age 46-59) and Gen X and Y households (age 45 and under) this segment has $1.24 trillion in assets.