More than half of Americans are delaying major life plans due to uncertainty over the economy, according to a new survey released Tuesday.
The Wells Fargo “Money Study” – conducted in the final weeks of the Biden administration – found among those putting of their plans that 33% were postponing buying a new home, one in six delayed plans to go to college and one in eight now expect to retire later than expected.
The major lender, which interviewed nearly 4,000 people between Sept. 5 and Oct. 4 for its second-ever poll, also found that 76% of Americans cut back spending – up from 67% last year.
“Consumer behaviors are shifting. The value of the dollar and what it is providing may not be as predictable anymore, which seems to be more pronounced for younger Americans,” said Michael Liersch, head of Advice and Planning at Wells Fargo.
“There is a clear social narrative surrounding the question: ‘Do I, and will I, have enough?’”
Many of those polled continued to blame inflation for their concerns, with about 90% saying they were still experiencing sticker shock when eating out or buying ticket prices for concerts.
The study also found that 82% of Gen Z adults, those born between 1997 and 2022, and 79% of Millennials, born between 1981 and 1996, are cutting back.
The Money Study’s results chime with the latest consumer confidence numbers released earlier on Tuesday, which showed persistent concerns about inflation and the state of the job market.
The index slipped to 98.3 for the month, down nearly 7% — the biggest drop since August 2021.
It comes as President Trump renews his threat to slap tariffs on America’s major trading partners, Canada and Mexico, next month, sparking fears they could further stoke inflation.
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