Data & Research August 13, 2015

33% Say Social Security Will Be Primary Retirement Income

For 80% of Americans, they will rely on Social Security substantially or somewhat.
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With the 80th Anniversary of Social Security occurring on August 14, AARP conducted a survey of 1,200 adults about their views on the program.

One-third, 33%, said Social Security will be the source of income they will rely on most during their retirement. Eighty-percent said they plan to rely on Social Security either in a substantial way or somewhat.

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However, 65% are worried that Social Security will not be enough on which they can exist. Sixty-eight percent expressed concern that they will not have enough savings to last their lifetime, and 69% fear that a major health expense could wipe them out financially.

Sixty-six percent said Social Security is one of the most important government programs, and this increases to 90% among adults younger than 30. Among those younger than 30, 85% want to know it will be there when they retire.

Eighty-five percent believe it is extremely important to be able to live independently in their home for as long as they want. However, 64% are afraid they won’t be able to do so. While 68% feel it is extremely important to have family around, 80% want to be self-sufficient so they won’t have to depend on their children or relatives for financial support.

Many adults express difficulty saving, with 69% saying they have to focus on their current financial needs, and 47% saying they don’t have enough money left to save after they have paid their bills. Nearly four in 10 (39%) have faced a major health need in their family that has set them back.

GfK Roper conducted the survey for AARP between June 4 and June 28.

Northwestern Mutual recently conducted a survey about Social Security that found nearly one-third (30%) of Americans think it is not at all likely Social Security will be there for them when they need it.

Diversions August 13, 2015

School Spending May Be Starting Later

With closets well-stocked with last year’s school supplies, back-to-school shoppers aren’t in a hurry to fill their baskets in August.
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Nearly four in 10 (38%) parents shopping for children in grades K-12 said they replenish school supplies throughout the year and feel less need to stock up at one time, according to two surveys by Deloitte. The global consulting firm found that nearly a third (31%) plan to complete their back-to-school shopping after the start of the school year. 

According to Deloitte’s surveys, individual American families’ spending for children in grades K-12 and college combined is expected to remain flat this season at $1,747, compared with $1,766 last year.

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The number of consumers who plan to reuse last year’s items has risen, from 26% to 39%, between 2011 and 2015. Consumers are no longer exclusively driven by discounts: Over those five years, coupon-clipping decreased 14 percentage points and intentions to buy more lower-priced items fell 11 points.

Shoppers will likely reach the stores this fall after making buying decisions using digital devices before arriving in retail. According to Deloitte, in-store purchases of electronics and apparel are largely influenced by the devices consumers use before and during their trip to the physical store. Last year, 49 cents out of every dollar spent on apparel in brick-and-mortar stores was digitally influenced, as was 62 cents of every dollar spent on electronics.

Other findings from the “Back-to-School” and “Back-to-College” surveys:

  • Eight in 10 smartphone owners in Deloitte’s “Back-to-School” survey plan to use their electronic devices in the back-to-school shopping process, up slightly from last year. Consumers also appear more inclined to research on their phones rather than click Buy: More than four in 10 consumers surveyed will access a retailer’s website or product information, but just 29% plan to use their phones to make a purchase.
  • Although mobile-payment apps and digital wallets are new technologies, seven out of every hundred respondents plan to use them for back-to-school shopping this year.
  • More than half (55%) of parents shopping for children in grades K-12 also say they will research online first before making a purchase in a store. Only 10% of respondents say they rely on social media for back-to-school shopping, down from 18% last year.

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