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How the middle class is preparing for the looming recession

How the middle class is preparing for the looming recession

| Editorial Board

| 07/17/2022

In American gastronomy, many chairs are already empty.

A recent survey shows how the US middle class is protecting itself from an imminent recession: According to a survey conducted in the US state of Georgia, many middle-class US citizens are proactively securing their finances and preparing for a possible recession. About three-quarters (77 percent) believe the country will face a downward spiral by the end of the year. As a result, many cut back on spending, delay large purchases, or plan to retire later. “Middle-income families are taking a hard look at their finances right now,” said Glenn Williams, CEO of Primerica. The company provides insurance, investment, and financial services to middle-income families throughout the United States and Canada. “Higher costs are weighing on its bottom line amid renewed fears of a recession,” Williams said.

According to the survey, many middle-class US citizens are proactively securing their finances and preparing for a possible recession. About three-quarters (77 percent) believe the country will face a downward spiral by the end of the year. As a result, many cut back on spending, delay large purchases, or plan to retire later. “Middle-income families are taking a hard look at their finances right now,” said Glenn Williams, CEO of Primerica. “Rising costs are weighing on their profits amid renewed fears of a recession.”

The economy continues to be a major strain on middle-income Americans, with 41 percent citing inflation as their biggest concern. 26 percent are primarily concerned about rising food prices. And 25 percent are concerned about the current financial situation in general. All values ​​are higher than in the reference month of March.

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Restaurant visits have been cancelled

71 percent of survey respondents currently spend less money on going to restaurants and bars and buying takeaway products. In March it was just 57 percent. 69 percent don’t use new tech devices and remain loyal to their old devices – a whopping 25 points increase from March. About half (49 percent) plan to budget or cut spending on groceries, up from 37 percent in March.

Overall, more than a third (38 percent) have put off a major purchase due to higher interest rates. Roughly the same number don’t want to miss their vacation trip for the next twelve months. 42 percent plan to work longer hours before retirement, and three-quarters of middle-income Americans feel they don’t have enough savings to retire with confidence, a 10 percent increase from March. Additionally, one in five plans to look for a better-paying job. (BTE/Red)

www.primerica.com