WHAT THE DATA SAY: Just 52% of Americans expect to be prepared for $1.3 million needed to retire

By: Ray Day

CONTACT:

Ray Day
ray.day@stagwellglobal.com 

We wanted to share our latest consumer and business insights, based on research from Stagwell. Among the highlights of our weekly consumer sentiment tracking (fielded June 23-25):

WEEKLY WORRIES ABOUT ECONOMY EDGE UP

Today, 87% of Americans are concerned about the economy and inflation – up 1 point from last week and higher than December’s 82% rate.

• 80% worry about a potential U.S. recession (up 1 point)
• 74% about affording living expenses (up 3 points)
• 76% about political divisiveness (up 3 points)
• 82% about U.S. crime rates (no change)
• 67% about the War on Ukraine (up 2 points)
• 52% about a new COVID-19 variant (no change)
• 50% about losing their jobs (up 3 points)

SCOTUS COLLEGE RULING MATCHES MOST AMERICANS’ VIEWS

This week’s Supreme Court decision to strike down race-based college admissions programs matches the majority of Americans’ opinions on the issue, according to our most recent poll with the Center for American Political Studies at Harvard University.

• 74% of voters say that college admissions should be determined only on qualifications and that race should not be a factor – 66% among Democrats, 74% among Independents and 82% among Republicans.
• A majority of every age group, racial group and gender also agree – including 56% of Black voters and 54% of 18-to-34-year-old voters.
• Voters are similarly opposed to racial preferences in other selection processes, such as medical school admissions (76% opposed) and corporate hiring (84% opposed).

BUSINESSES MOST EXCITED ABOUT AI FOR EMPLOYEE PRODUCTIVITY AND CUSTOMER SERVICE

U.S. business leaders are eager to adopt generative AI at their companies to improve operations, but concerns around quality and security are real, according to our Harris Poll survey with Insight Enterprises.

• In the next 12 months, increasing revenue and driving innovation are business leaders’ top two priorities.
• Yet 49% also say keeping pace with competitors on technological innovation is a top challenge.
• Leaders say they are turning to generative AI technologies within the next three years to: improve employee productivity (72%); customer service (66%); assist with research and development (53%); and automate software development (50%).
• 81% of companies today have generative AI policies and/or strategies established or in the works.
• AI excitement is not without concerns: Half of the respondents expressed concerns about the implementation of generative AI technologies at their organization, with quality and control (51%) and safety and security risks (49%) topping the list.

YOUNG PEOPLE PLAN TO RETIRE EARLIER BUT SAVE LESS

A striking discrepancy exists between Gen Z’s expectations versus the reality of their retirement, our Harris Poll study with Northwestern Mutual found.

• Gen Z expects to retire more than a decade earlier (at age 60) than Boomers’ expectation (age 71). That compares with Millennials’ (age 63) and Gen X’s (age 65) expectations.
• 28% of Americans think they likely will live to 100. Expectations are greater among younger adults, with 40% of Gen Z and Millennials expecting to hit triple digits.
• Yet Gen Z also is underestimating their retirement nest egg. Gen Z members expect to need $1.2 million to fund that 40-year retirement – compared with $1.27 million for all Americans.
• Just 52% of all Americans say they expect to be financially prepared for retirement. Comfort is lowest for Gen X (45%) and highest for Gen Z (65%).

AMERICANS PREPARED TO SPEND ON WEIGHT LOSS DRUGS

Half of Americans would be willing to spend up to $100 a month for weight loss medicines like Wegovy, and one-third would pay whatever they can afford, according to our Harris Poll survey with STAT.

• 56% of Americans today are concerned with their weight, and 39% say their doctors are concerned.
• Half (46%) of Americans are familiar with new weight-loss medications – highest among parents with kids (63%) and Millennials (61%).
• 44% of Americans would spend up to $100 a month for the drugs, 23% $100 to $249 a month, 17% $250 to $499 a month and 11% $500 to $1,000 a month.

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