These are the average American’s top financial concerns

The shortage of non-public and retirement savings resulting from inflation, rising housing costs, and mounting household debt have changed consumer behavior and lifestyles. While some American citizens are cutting spending, others are taking over a 2d job or devoting less to debt repayment.

Related: The common American faces one major 401(k) retirement predicament

MassMutual released its Q3 2024 Consumer Spending & Saving Index as of late and found that inflation, the 2024 Presidential Election, and retirement contributions are one of many most pinnacle concerns that impact personal finances.

The shortage of disposable income and the power to save has impacted life milestones, equivalent to paying off student loans, raising a family, and retirement. Despite the undeniable fact that U.S. consumers feel more confident in the course of the economy, Seventy three% still accept as true with a recession would impact their day-to-day finances.

Saving for retirement is a top concern, and GenX is feeling the squeeze

Handiest 0.5 of American workers accept as true with they’re heading in the appropriate direction for their retirement plan, and 25% don’t think they’ll have the power to pay off all outstanding debts by the time they retire.

Over 55% of Gen X workers note that they aren’t heading in the appropriate direction with their retirement savings, more so than the other generation. Bruce Tanahill, JD, CPA/PFS and Director of Estate & Business Planning at MassMutual, explains why Gen X feels farther on the back of on their finances than their younger counterparts.

“Gen X’s ability to save for retirement has been reduced by the dot com crash in 2000, the Great Recession, and the pandemic,” he said. “Gen Xers can amplify their retirement savings by taking good thing about employer-sponsored retirement and extending 401(k) and IRA contributions to maximize employer match.”

More on retirement:

• The common American faces one major 401(k) retirement predicament
• How your mortgage is key to early retirement
• Some uncomplicated tasks can can facilitate your thrive in retirement

Younger generations also face barriers to saving for retirement because of the soaring student loan debt and skyrocketing housing costs. These financial burdens prevent Millennials and Gen Z from reaching milestones like buying a house or having children.

One in four (23%) Millennials and Gen Zers note that they don’t plan to have young people attributable to the financial cost of having a baby. 43% think they could’t come up with the money for to have children and would experience more financial freedom without them.

Parents agree, with 38% of people with children less than 18 stating that having children hurt their finances, and most parents (51%) note that their biggest source of anxiety is now no longer being ready to improve their family financially.

How inflation and politics impact consumer self belief

Most American citizens cite the economy and inflation as some of essentially the most influential factors determining their vote for president in November.

eighty four% of workers are worried about how the end results of the 2024 Presidential election will impact their finances, though nearly 0.5 (Forty eight%) are optimistic about their future financial situation.

Related: Dave Ramsey explains how your mortgage is key to early retirement

The University of Michigan Consumer Sentiment Index also showed that consumer expectations for their future improved between July and August 2024, a jump in self belief some are linking to the presidential election.

In step with the survey, Forty one% of customers see Kamala Harris as the more practical candidate for the economy, while 38% feel the identical about Donald Trump.

Joanne Hsu, Director of Consumer Surveys on the University of Michigan, expects consumer sentiment to fluctuate leading as much as the election, relying on how candidates are polling.

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