Thursday, April 9, 2009

End of Recession Will Not Bring Back Retirement Spending

Even after the recession ends, Americans said their spending will return to just 86% of pre-recession levels, according to a survey by AlixPartners, a global business-advisory firm.

The spending drop will equate to an approximate 10% drop, or more than $1 trillion annually, in GDP, according to a press release of the survey results.

Survey participants estimated that their retirement savings have dropped an average of 25%, and almost a quarter of those polled (22%) said they now plan to retire later than previously expected. Among that number, the expected retirement age jumped 3.6 years to older than age 65. When asked why they now expected to retire later, 30% cited loss of savings or retirement.

AlixPartners said that the huge Baby Boomer generation—once thought to be moving into the years in which they would be spending their retirement savings—might instead be accounting for more than a third (35%) of total dollars saved by Americans post-recession.

If the recession has meant you are unemployed there is still hope.
If you would like to create your dream job or operate a micro-business, you need to read Career Success Without a Real Job.