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“Spend less and save more. That’s all they can do,” Through the Cycle Chairman John Wronsky said on “Varney & Co.” Tuesday. “When will they make a move like that? That’s beyond me. But it’s also quite possible that this consumer spending boom that lasted from 2022 to 2023 will disappear in 2024. .”
According to Schroders’ 2023 American Retirement Survey, people between the ages of 43 and 58 say they need $1,112,183 to retire comfortably, but can only expect to receive $661,013. got it. This difference of $451,170 exceeds the estimated savings gap faced by Millennials and Baby Boomers.
“As the first generation to retire with little to no safety net of a defined benefit plan, the stakes are higher for Gen Deb Boyden, head of U.S. defined contribution plans at Schroders, is quoted in the study as saying. .
Additionally, 45% of Gen X respondents said they have no plans for retirement at all, compared to 43% of Millennials and 30% of Boomers.
Additionally, two-thirds are concerned that their workplace retirement plans won’t increase as much as they expected.
“The sooner consumers cut back on spending, the less likely the next recession will be. The longer we put off cutting spending, the longer interest rates appear to remain high. That would hurt,” Wronsky responded.
“A year ago, I looked at restaurant sales and things like that. They were up almost 10% compared to a year ago. [in the] “This is the last quarter of 2022,” he continued. “So I said to myself, well, by the last quarter of this year, restaurant sales will be lucky to grow 5%. Guess what? They’re still growing close to 10%. So maybe There was probably even more surplus left over from the massive stimulus package.”
The report also found that Gen It also focuses on how “it is not easy” to try to close the gap between rich and poor. advantage.
Fear is said to be the main reason for this trend, as Gen
A report from the Social Security and Medicare Administration Board released in March found that Social Security’s retirement funds could run out of money as early as 2033, a year earlier than previously expected. found.
But Schroders’ Boyden says there’s still a glimmer of hope. Using this time to plan for retirement, increase your savings rate, and make better investments is critical to improving your retirement readiness before it’s too late. ”
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