New York Fed Warns of Implications of Decreasing Retirement Expectations on Economy and Social Security

Despite the ongoing retirement savings crisis in the US, there seems to be little indication that it is forcing people to delay their retirement or continue working full-time into old age. According to research by economists at the Federal Reserve Bank of New York, retirement-age full-time employment expectations have decreased since the pandemic, with lower-income and female workers reporting particularly large drops. However, analysts suggest that this trend could have significant implications for the economy and Social Security payments if it continues. In a separate report, the New York Fed warned that consumer expectations regarding retirement planning “may continue to affect the labor market in years to come.” Meanwhile, Walmart announced that it would eliminate several hundred corporate jobs and relocate most of its remaining remote office staff to its Bentonville headquarters. The company cited the need for improved collaboration, innovation, and culture development as reasons for the move. Separately, the retail giant revealed its plans to exit its virtual healthcare services and close all 51 of its healthcare centers in six states. Elsewhere, new data from the Federal Reserve Bank of New York showed that as household debt balances grew during the first quarter, delinquencies also rose, reaching their highest levels since 2012 in some cases. Analysts warned that more Americans were becoming financially overextended, particularly in relation to credit card debts.