US households have been saving less than previously estimated, with personal savings at a 70-year low, according to revised government data. This contraction in savings comes at a time when more than half of middle-income earners in the US have a negative view about their finances and a third expect to be worse off over the next year, as per a recent survey. The trend is concerning as it indicates a major headwind for consumers, especially amid a high interest rate and high debt environment. Economists at the New York Fed are puzzled by the fact that US consumers used up their pandemic savings faster than in any other major developed economy. Additionally, a significant portion of Gen Zs are taking on side jobs due to money fears. The decline in savings and financial insecurity have implications for retirement planning, with experts highlighting the need for Americans to save more to ensure a comfortable retirement.
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Americans are saving far less than normal in 2023. Here's why https://t.co/n5d0hpLyxl
You Can Afford To Invest: Start With Just $100 A Month https://t.co/mOknjAjLYJ https://t.co/LroYhkNPQE
More than half of middle-income earners in the US have a negative view about their finances and a third expect to be worse off over the next year, according to a new survey https://t.co/hzMkLi95BS
More than half of middle-income earners in the US have a negative view about their finances and a third expect to be worse off over the next year, according to a new survey https://t.co/vFWbVPosbM
More than half of middle-income earners in the US have a negative view about their finances and a third expect to be worse off over the next year, according to a new survey https://t.co/LPL21D6VC3
A recent poll shows more retirees reported they are living comfortably than non-retirees expect to live comfortably. https://t.co/vpnt5kzKDc
US consumers used up their pandemic savings faster than in any other major developed economy, and that has economists at the New York Fed scratching their heads https://t.co/o3PX3FMZiw
US consumers used up their pandemic savings faster than in any other major developed economy, and that has economists at the New York Fed scratching their heads https://t.co/ObExPLY6QP
Almost half of Gen Zs have side jobs as money fears take over, survey finds https://t.co/R8Z1wZi8Ef
Here's how much you need to save each month to earn $40,000, $50,000 and $60,000 per year in interest for retirement https://t.co/3bsrt7BF3o
Why Some Individuals Struggle With Retirement https://t.co/jonyWW8qhP https://t.co/gJWGZn1bRC
Why Some Individuals Struggle With Retirement https://t.co/eqtIVQDH8Y https://t.co/YpOG1Rum2f
Personal savings in the US are only 3.9% of income, near its 70-year low. We used to be able to set aside 15% of our income, now we save just 1/5th of that. Decades of endless price inflation has eaten away at American livelihood. No more wars, fix the United States first. https://t.co/LZ9FDBNCQ3 https://t.co/z9Jaifx5ab
This has happened only 3 times in the last 75 years Savings as a % of national income is now contracting The previous 2 contractions coincided with the: - 2008 Financial Crisis - 2020 Pandemic High interest rate - high debt environment is a major headwind for the consumer At… https://t.co/PrnG56cfeM https://t.co/Y22GSkd9pF
US households saved some $1.1 trillion less than previously thought over the past six years, according to revised government data: https://t.co/94x7mJnbpu