One Third of American Nonretirees Expect Social Security to be Major Source of Retirement Funding

Gallup reports that 33% of American nonretirees predict Social Security will be a major source of retirement funding.  This percentage has increased since the recession; in 2007, 27% believed Social Security would prove vital to their retirement fund.  57% of retirees depend on Social Security as a major source of income, while only 33% of retirees rely on a work-sponsored pension plan.  In addition, nonretirees are more likely than retirees to utilize a retirement account (46% to 24% respectively) – such as a 401(k) or an IRA – to be the major source of funding their retirement.  This percentage has decreased six points since the recession.  Gallup’s Chief Economist, Dennis Jacobe, believes stock and retirement losses have led to many of these trends.  Also noteworthy is the fact that 38% of nonretirees expect to retire comfortably – a new low.

Americans Spend 16% More Than Previous Year

Gallup reports that Americans’ daily spending rose sharply during March.  Based on self-reported data on daily spending at restaurants, stores, gas stations, and online, Gallup found that the average American spends $74 a month, up eleven dollars from the previous month.  This figure is also up 16% from March of 2011, when the average American spent $64.  The recession obviously influenced consumer spending.  In March of 2008, with the recession just beginning, consumer spending hovered at $81 a month.  Examining just the month of March over the past 3 years (comparing multiple months is difficult due to seasonal factors influencing consumer spending), it is clear that the level of spending remained in a tight range of $59 to $64.  While the financial crisis drove Gallup’s consumer spending down anywhere from 21% to 27%, the most recent jump in the figure represents a refreshing development.  With that said, Gallup’s Chief Economist Dennis Jacobe notes that newfound economic confidence, strengthened job creation, higher gas prices, and an early Easter may all have direct influence on daily spending.  

Unemployment Declines

Dennis Jacobe, Gallup’s chief economist, reports that Gallup’s unadjusted unemployment rate fell to 8.4% in March.  This figure is the lowest since October and November of 2011.  Gallup also found that 9.6% of Americans are working part-time but want to work full-time.  This percentage is down from 10.0% in February, but still higher than the 9.2% seen a year ago.  Gallup also calculates a seasonally adjusted unemployment rate, the formula for which Jacobe says is comparable to the method used by the Bureau of Labor Statistics.  The seasonally adjusted rate fell to 8.1% in March.  The Bureau of Labor Statistics has recently released its regional and state unemployment data, and releases its national jobs numbers Friday.