Ameicans closest to retirement age most likely to be cutting back on spending, survey finds
Fewer Americans are watching what they spend, according to consumer spending trends tracked in a new Gallup poll
Nearly four years after the recession was declared ended, the percentage of Americans who report “spending less money” has dropped to 41 percent, down from 57 percent in 2010. Meanwhile, more than a quarter (26 percent) of Americans said they are spending more money than they used to, while nearly one-third (32 percent) said they are spending the same amount.
Consumer spending accounts for 70 percent of the economy.
Spending less is now, or will become, a matter of routine for 31 percent of respondents who said they are now reigning in their spending. But Americans who said they are spending more money are most likely to see the situation as temporary than a new normal, Gallup found, suggesting the increase in spending is not the result of increased earnings but rather to higher expenses.
Not surprisingly, respondents who are closest to retirement age are the most likely to be cutting back on spending, according to consumer spending trends. Despite the recent gains in the market which theoretically are boosting retirement portfolios, almost half (46 percent) of baby boomers between the ages of 50 and 64 said they are spending less, the highest of any age group. Almost one-fourth (23 percent) are spending more, while another 30 percent are spending the same. This serves as a reminder, Gallup reports, “that individuals on the cusp of retirement…remain especially frugal even in the fourth year of the economic recovery.
Americans recognize the importance of saving over spending. A Millionaire Corner survey conducted last November found that saving more and spending list topped a list of financial New Year’s resolutions, especially among respondents under 40. Nearly half (46 percent) said they would save more in 2013 compared with 30 percent of surveyed investors overall.
Related story: Gen X millionaires express greatest financial regrets. Click here to read more.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.