So much for stupid government stimulus packages - 82 percent of Americans say they will use upcoming tax relief for savings or to pay down debt.
In fact, even after the recession ends, Americans said their spending will return to just 86 percent of pre-recession levels, according to a survey released today.
The drop in spending drop translates into more than $1 trillion annually, in GDP.
On the retirement front, survey participants estimated that their retirement savings have dropped an average of 25 percent, whereas 22 pecent said they now plan to retire later than previously expected.
The anticipated retirement age jumped 3.6 years to older than age 65. When asked why they now expected to retire later, 30 percent claimed it was the loss of savings.
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1 comment:
I'm not sure I buy it when I read studies that say people will spend less and save more in the future. I understand that many are feeling the shock of the current financial panic, but I expect that saving and spending patterns will go back to pre-recession levels once we are out of the current economic morass. I certainly hope people will be wiser and that they learn to better manage their finances. I have launched a new blog at www.SmartNestEgg.com to provide some financial education from a non-sales oriented perspective. Come visit and let me know what you think.
Steve Merrell
www.SmartNestEgg.com
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