👴🏽Is The US Facing A Retirement Crisis?

Good morning. US stock futures declined in Monday morning trading as investors await key inflation data for further clues on the longevity of this year’s market rally.

💰 Americans in better retirement shape than expected

📝 Our report: Two surprising studies from Vanguard and the Transamerica Center for Retirement Studies suggest that, despite doomsday predictions, many Americans might have a brighter retirement future than expected. The analysis was pulled from Vanguard’s roughly 1,500 qualified plans and nearly 5 million retirement plan participants, for which Vanguard directly provides record-keeping services.

 🔑 Key points:

• Despite high inflation, Vanguard found that Americans set aside funds for retirement at the highest rates ever. More than 4 in 10 workers increased the amount of their paycheck they set aside in their 401(k) account last year, according to Vanguard's “How America Saves 2024” report.

• The majority of plans — 6 in 10 — automatically enroll employees into the retirement plan, giving them the option to opt out rather than having to opt in. Ten years ago, only a third of plans did so.

• Per new research from the Transamerica Center for Retirement Studies, 44% of workers participating in a 401(k) or similar retirement plan are super savers — 15% contributing 11% to 15%, and 29% contributing more than 15% of their annual pay. And these so-called super savers are found across generations: a whopping 53% of Generation Z, 44% of millennials, 40% of Generation X, and 44% of baby boomers.

💡 So what: The implications of studies from Vanguard and the Transamerica Center for Retirement Studies indicate that Americans might be saving more for retirement than previously thought, potentially leading to better financial security in their later years. This could challenge existing narratives about a looming retirement crisis and influence policymakers, financial planners, and individuals to adjust their strategies and expectations regarding retirement savings.

Monday - Consumer Credit

Tuesday - Fed Chairman Powell Testimony to Senate, NFIB Optimism Index

Wednesday - Fed Chairman Powell Testimony to House

Thursday - US Consumer Price Index

Friday - Consumer Sentiment (prelim)

📈 Guy Spier shares his 8 investing rules for success!

🏡 Thinking about buying your first home? Consider these 11 tips!

😓 Here’s how you can avoid burnout at work!

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🚗 China auto group voice concerns over EU EV tariffs

WHAT: The China Association of Automobile Manufacturers (CAAM) expressed "strong dissatisfaction" with the EU's proposed anti-subsidy tariffs, the industry group said in a statement. Manufacturers had cooperated with the European Commission's investigation into Chinese subsidies, but the inquiry had ignored the facts and preselected results, CAAM said in a post on the Chinese messaging app WeChat.

WHY: The provisional duties of between 17.4% and 37.6% without backdating are designed to prevent what European Commission President Ursula von der Leyen said is a threatened flood of cheap Chinese electric vehicles built with state subsidies.

🎮 Apple allows gaming app into app store

WHAT: After numerous rejections, Apple finally gave the nod to Epic Games' third-party app marketplace for launch in the European Union (EU). As now permitted by the EU's Digital Markets Act (DMA), Epic announced earlier this year it planned to bring both the digital storefront and its flagship game, Fortnite, back to iOS in Europe.

WHY: Under the DMA's new rules, Apple is required to allow third-party app stores on the iPhone as the tech giant was deemed a "gatekeeper" under EU law.

🛒 Big box retailer cleared of money transfer fraud

WHAT: A U.S. judge tossed out a key claim in the Federal Trade Commission's (FTC) lawsuit accusing Walmart of ignoring scam artists who used its money transfer services to swipe hundreds of millions from consumers. In a recent decision, a U.S. District Judge in Chicago rejected a claim that Walmart owes monetary damages for violating the federal Telemarketing Sales Rule. The rule prohibits deceptive and unfair acts in telemarketing, and bans money transfers to pay for goods and services offered through telemarketing.

WHY: Walmart acts as an agent for money transfers by companies such as MoneyGram, Ria and Western Union. Money can be hard to trace once delivered.

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