MORNING BUSINESS REPORT: Young Adults Focus on Retirement
How did your country report this? Share your view in the comments.
Diverging Reports Breakdown
Pension income needed to retire jumps as family costs rise
The Pensions and Lifetime Savings Association (PLSA) uses evidence from focus groups to make the estimates. It is intended as a guide for those planning their retirement savings. The rise is primarily the result of rising food and energy costs, researchers said.
The rising cost of living and an expectation to offer financial support to grandchildren had pushed up the income required by £8,000, it said.
The Pensions and Lifetime Savings Association (PLSA) uses evidence from focus groups to make the estimates.
It is intended as a guide for those planning their retirement savings.
The rise is primarily the result of rising food and energy costs, researchers said.
The calculations are pitched at three different levels – minimum, moderate and comfortable – and are developed and maintained independently by the Centre for Research in Social Policy at Loughborough University.
They estimated that a single person needed £14,400 a year for a minimum income, and £43,100 a year for a comfortable retirement.
Couples required a joint £22,400 at the minimum level, £43,100 at a moderate level, and £59,000 at a comfortable level.
American Airlines’ focus on ESG in retirement plan is illegal, US judge rules
A federal judge in Texas on Friday said American Airlines violated federal law by basing investment decisions on environmental, social and other non-financial factors. The ruling by U.S. District Judge Reed O’Connor appeared to be the first of its kind amid growing backlash by conservatives to an uptick in socially-conscious investing. American said in a statement that it was reviewing the decision. American pilot Bryan Spence sued American in 2023, saying it had violated the federal Employee Retirement Income Security Act (ERISA) by failing to remain loyal to 401(k) plan participants and to prudently oversee their assets. The judge ruled after holding a four-day non-jury trial in June, in a class action on behalf of more than 100,000 participants in the retirement plan. He will decide later on whether class members suffered financial harms and American must pay them damages.
Summary
Companies Plan should stick to financial factors, judge says
Ruling is among first of its kind
ESG investing facing backlash from conservatives
Jan 10 (Reuters) – A federal judge in Texas on Friday said American Airlines (AAL.O) , opens new tab violated federal law by basing investment decisions for its employee retirement plan on environmental, social and other non-financial factors.
The ruling by U.S. District Judge Reed O’Connor appeared to be the first of its kind amid growing backlash by conservatives to an uptick in socially-conscious investing.
Sign up here.
O’Connor said American had breached its legal duty to make investment decisions based solely on the financial interests of 401(k) plan beneficiaries by allowing BlackRock (BLK.N) , opens new tab , its asset manager and a major shareholder, to focus on environmental, social and corporate governance (ESG) factors.
“The evidence made clear that [American’s] incestuous relationship with BlackRock and its own corporate goals disloyally influenced administration of the Plan,” wrote O’Connor, an appointee of Republican former President George W. Bush.
A BlackRock spokesperson said: “We always act independently and with a singular focus on what is in the best financial interests of our clients. Our only agenda is maximizing returns for our clients, consistent with their choices.”
The judge ruled after holding a four-day non-jury trial in June, in a class action by American pilot Bryan Spence on behalf of more than 100,000 participants in the retirement plan. O’Connor said he would decide later on whether class members suffered financial harms and American must pay them damages.
American said in a statement that it was reviewing the decision. Lawyers for Spence did not immediately respond to requests for comment.
BlackRock, which on Thursday said it was leaving an environmentally focused investor group under pressure from Republican politicians, is not involved in the lawsuit.
In November, BlackRock and two rival asset managers were sued by 11 Republican-led states who claim the firms violated federal antitrust law through climate activism that reduced coal production and caused energy costs to increase. BlackRock called the claims baseless.
Spence sued American in 2023, saying it had violated the federal Employee Retirement Income Security Act (ERISA) by failing to remain loyal to 401(k) plan participants and to prudently oversee their assets.
O’Connor last February rejected American’s claims that the lawsuit should be dismissed because Spence could not show that the 401(k) plan had underperformed, paving the way for a trial.
On Friday, the judge said that American had breached its duty of loyalty to retirement plan participants. But the company’s decisions did not violate its duty of prudence, O’Connor said, because it was acting according to prevailing industry standards.
O’Connor is known for frequently ruling in favor of conservative litigants challenging laws and regulations governing guns, LGBTQ rights and healthcare.
The Biden administration in 2023 adopted a rule allowing 401(k) and other plans to consider ESG factors as a “tiebreaker” between financially equal investment options.
The rule replaced a regulation adopted during Republican President-elect Donald Trump’s first administration barring the consideration of any non-financial factors, which could be resurrected after Trump takes office for the second time later this month.
Reporting by Daniel Wiessner in Albany, New York; editing by Alexia Garamfalvi and Diane Craft
Our Standards: The Thomson Reuters Trust Principles. , opens new tab
Share X
Link Purchase Licensing Rights
Say goodbye to retirement? A ‘soft saving’ trend is emerging among young people
3 in 4 of Gen Z would rather have a better quality of life than have extra money in their banks, a report by Intuit shows. Soft saving refers to putting less money into the future, and using more of it for the present. Personal saving rates among Americans today seem to mirror the soft savings trend. Only 53% of workers believe they are on track to retire with the lifestyle they want in 2023, according to a Blackrock report. Almost half the working population either expects to work past the age of 65, or do not have plans to retire, a study by Transamerican Center for Retirement Studies found. However, experts say the definition of retirement is changing between generations and could make the act of “retiring” obsolete, if not already obsolete, as younger workers are more likely to work during their working years and save for a lifelong income in retirement. The report found the approach to investing and personal finance by Gen Z’s — those born after 1997 — to be “softer” than previous decades.
For most people, their goal is to work hard, save money and retire early. But a “soft saving” trend is emerging among younger workers, challenging the traditional way of thinking. Soft saving refers to putting less money into the future, and using more of it for the present. Generation Z — a generation that puts experiences before money — is leading the so-called soft saving wave, according to the Prosperity Index Study by Intuit. “Soft saving is the soft life’s answer to finances,” said the report. A “soft life” is a lifestyle that embraces comfort and low stress, prioritizing personal growth and mental wellness.
Younger generations value a balance between the traditional ‘hustle’ to save every single penny and using some of their extra income to enjoy life now. Ryan Viktorin Vice President, Financial Consultant at Fidelity Investments
The report found the approach to investing and personal finance by Gen Z’s — those born after 1997 — to be “softer” than previous decades. What does that mean? It means younger investors tend to put their money in causes that reflect their personal views. They also seek emotional connection with brands and professionals they choose to engage with, Liz Koehler, head of advisor engagement for BlackRock’s U.S. Wealth Advisory business told CNBC.
Are people saving less?
Younger workers have a desire to break free from restrictive financial constraints. Three in four Gen Z would rather have a better quality of life than extra money in their banks, the Intuit report shows. In fact, personal saving rates among Americans today seem to mirror the soft savings trend. According to the U.S. Bureau of Economic Analysis, Americans are saving less in 2023. The personal saving rate — the portion of disposable income one sets aside for savings — was significantly lower at 3.9% in August, compared to the 8.51% average in the past decade, according to data from Trading Economics which goes as far back as 1959.
One of the reasons for a drop in personal savings is the rebound from the Covid-19 pandemic, said Ryan Viktorin, vice president financial consultant at Fidelity Investments, a financial services corporation. As Americans spent significantly lower during the pandemic in the last two to three years, people more are likely to spend a lot more now to make up for lost time, she told CNBC. Additionally, inflation makes it harder for people to cover their expenses or save, Koehler said. The decrease in personal saving rates also reflects a change in financial goals among workers today. As younger people enter the workforce, they bring in new financial priorities and are more likely to embrace a “balance between the traditional ‘hustle’ to save every single penny and using some of their extra income to enjoy life now,” Viktorin said.
Retiring and savings
Retirement is the grand finale for most workers. However, more are concerned they may not be able to retire at all. A report by Blackrock shows that in 2023, only 53% of workers believe they are on track to retire with the lifestyle they want. A lack of retirement income, worries over market volatility and high inflation were some of the reasons cited for a lack of confidence about retirement among workers.
Spending money on things that truly make you happy is great … [but] people should satisfy their near-term needs and stay on-track with their long-term goals before spending freely. Andy Reed Head of Investor Behavior at Vanguard
Younger workers also share the same sentiments, where two in three Gen Z are not sure if they will ever have enough money to retire. However, this fear may not be that much of a concern for the younger generation, as most are actually not looking to retire early — and some don’t want to retire at all, the report by Intuit showed. Additionally, the Transamerican Center for Retirement Studies found that almost half the working population either expects to work past the age of 65, or do not have plans to retire. Traditionally, retiring entails leaving the workforce permanently. However, experts found that the very definition of retirement is also changing between generations.
About 41% of Gen Z and 44% of millennials — those who are currently between 27 and 42 years old — are significantly more likely to want to do some form of paid work during retirement. That’s higher than the 31% of Gen X (those born between 1965 to 1980) and 21% of Baby Boomers (born between 1946 to 1964) surveyed, the report by the Transamerican Center for Retirement Studies showed. This increasing preference for a lifelong income, could perhaps make the act of “retiring” obsolete. Although younger workers don’t intend to stop working, there is still an effort to beef up their retirement savings. Fidelity’s second quarter retirement analysis found that millennials and Gen Z’s are still major beneficiaries of the 401(k) saving plan, a retirement savings plan offered by American employers that has tax advantages for the saver. The report revealed that in the second quarter of last year, the average 401(k) balances were up by double digits for Gen Z and millennials — Gen Z saw a 66% increase and millennials had 24.5% increase.
What are people spending more on?
Still, one question remains: where are people directing their money as they spend more and save less? The study by Intuit found that millennials and Gen Z are more willing to spend on hobbies and make non-essential purchases compared to Gen X and boomers. About 47% of millennials and 40% of Gen Z expressed a need to have money to pursue their passion or hobby, compared to only 32% of Gen X and 20% of boomers.
Experts highlighted travel and entertainment as some of the non-essential experiences the younger generation is prioritizing. Andy Reed, head of investor behavior at investment management firm Vanguard, said Gen Z’s spending on entertainment increased to 4.4% in 2022, compared to 3.3% in 2019. In addition, Americans are “re-focused” on post-pandemic travel, a possible reason why there is a decrease in personal saving rates, said Fidelity’s Viktorin.
Soft saving is the soft life’s answer to finances. Intuit Prosperity Index Study
Top 10 Personal Finance Podcasts
The podcast industry has exploded with growth, and that growth has extended to podcasts about investing and finance. There are podcasts to help you make a budget, manage debt, save for retirement, and navigate buying a home. Listeners learn about financial literacy, budgeting, investing, financial independence to make sense of their money matters. The Investopedia Express, hosted by editor-in-chief Caleb Silver, digs into the most important stories in finance and global economics. The Dave Ramsey Show offers advice on life and money three times a week, and The Clark Howard Podcast airs twice weekly for 40 minutes. The number of podcast listeners worldwide in 2024 is expected to be504.9 million, according to eMarketer, with 3.5 million to 4.5million in the U.S. and 2.7 million in the UK and Canada. The podcast industry is booming, and there are more than 100,000 personal finance podcasts on iTunes and other sites, including CNN, Apple, Spotify, and Google Play.
If you are looking to make your first budget, manage your debt, save for retirement, or navigate buying a home, here are 10 personal finance podcasts to consider.
And, don’t forget to check out Investopedia’s podcast, The Investopedia Express, where editor-in-chief Caleb Silver digs into the most important stories in finance and global economics.
Key Takeaways Personal finance podcasts can guide you when you’re making major financial decisions.
There are podcasts to help you make a budget, manage debt, save for retirement, and navigate buying a home.
The Dave Ramsey Show offers advice on life and money three times a week.
The Clark Howard Podcast airs twice weekly for 40 minutes and provides money-saving tips.
You can also listen to The Investopedia Express, hosted by editor-in-chief Caleb Silver.
Episode release date: Every weekday
Average episode duration: Three 40-minute episodes per weekday.
In his daily radio and podcast show, Dave Ramsey offers advice on life and money, answering questions from callers seeking to learn how to get out of debt and start building for the future. He provides tips on how to turn things around, making personal finance and money management simple. His goal is to provide a plan that anyone can work with.
Episode release date: Weekdays
Average episode duration: 30 to 40 minutes
As a nationally syndicated radio talk show host and consumer reporter for TV news, Clark Howard aims to empower people to take control of their finances by providing money-saving tips, consumer advice, hot deals, and economic news to help listeners achieve financial freedom. He shares practical advice to help listeners save money and “avoid rip-offs” to help listeners reach their money goals and live a financially healthy life.
Episode release date: Sundays and Thursdays
Average episode duration: 20 to 30 minutes
With over 40 years of experience, Suze Orman teaches listeners that they cannot fix a financial problem with money. She encourages listeners to go within themselves and empowers them to control their destinies. For her, money itself is not the end goal but the means to living a full and meaningful life.
Episode release date: Mondays, Wednesdays, and Fridays
Average episode duration: 30 minutes
As a financial correspondent, author, and TV personality, Farnoosh Torabi provides listeners with candid conversations about money strategies with the world’s top business minds and influencers, including Arianna Huffington, Seth Godin, and Margaret Cho. Plus, on Fridays, she answers listeners’ money questions on #AskFarnoosh.
Episode release date: Mondays and Fridays
Average episode duration: Longer than 60 minutes
Financial experts Mindy Jensen and Scott Trench interview thought leaders about how to earn more, keep more, spend smarter, and grow wealth. Through these conversations, BiggerPockets Money provides listeners with tips and actionable advice about how to get their “financial house” in order.
504.9 million The number of podcast listeners worldwide in 2024, according to eMarketer.
Episode release date: Twice a week, days vary
Average episode duration: Longer than 60 minutes
Host Paula Pant interviews a diverse group of people—including entrepreneurs, early retirees, millionaires, and investors—exploring the tough work of living a balanced life. She coaches listeners on how to make wise daily decisions about how to spend money, time, energy, focus, and attention. Because, after all, you can afford anything, but not everything.
Episode release date: Mondays, Wednesdays, and Fridays
Average episode duration: 30 to 45 minutes
Brian Preston and Bo Hanson, both financial planners and wealth managers, help listeners make smart financial decisions by exploring practical personal finance topics like how to maximize your retirement and how to buy a house.
Episode release date: Daily
Average episode duration: 10 minutes
Host Diania Merriam aims to simplify how people handle and manage money by narrating some of the best personal finance blogs and providing listeners with tips to optimize their financial lives. Listeners learn about financial literacy fundamentals like budgeting, investing, and financial independence to start making sense of their money matters.
Episode release date: Wednesdays
Average episode duration: 30 minutes
J. David Stein, a former chief investment strategist and money manager, explores all things money-related, including how money works, how to invest it, and how to live without worrying about it. He aims to teach listeners how to handle their finances in ways that are simple to understand.
Episode release date: Wednesdays and Fridays
Average episode duration: 15 to 30 minutes
“Planet Money” is NPR’s twice-weekly economic and personal finance podcast. The national radio network started the show in 2008, right after the financial crisis, as a way to explain the economy. The show’s producers find creative ways to break down complicated economic and financial topics. Hosts include Amanda Aronczyk, Mary Childs, and Robert Smith, to name a few. Planet Money also has a shorter podcast, “The Indicator,” that runs every weekday with a reduced runtime.
What Is the Best Way to Learn About Finance? There are many free resources to help someone learn about finance, from books and podcasts to YouTube shows. Also, many universities offer free finance courses, and similar programs may be available in libraries and community centers.
What Is the Best Way to Start Saving for Retirement? The most important rule for retirement savings is to start early. That way you can take advantage of compound interest, allowing your savings to snowball by the time you reach retirement age. It’s also important to start saving in tax-advantaged accounts, such as a 401(k) or an individual retirement account. These accounts offer various tax benefits, meaning that you’ll have more money saved when you reach retirement age.
What’s the Best Way to Save for College? If you want to start a college fund for yourself or someone else, consider investing in a 529 plan. These are tax-advantaged accounts—similar to a retirement plan—that allow you to save money while deferring taxes, and they can be spent on certain qualified expenses such as tuition. In the event that the recipient decides not to pursue higher education, the plan can be rolled into a Roth IRA after 15 years.
The Bottom Line
Personal finance podcasts are a great choice for audiences to get guidance on saving, budgeting, debt, retirement, and other personal finance topics. The Ramsey Show, with daily episodes, leads the list of finance podcasts if you are seeking advice on paying off debt, building wealth, leading your business, and much more.
The Investor Revolution
Most corporate leaders understand that businesses have a key role to play in tackling urgent challenges such as climate change. But many of them also believe that pursuing a sustainability agenda runs counter to the wishes of their shareholders. The impression among business leaders is that ESG just hasn’t gone mainstream in the investment community.
About the Art: Daily Overview uses the world’s highest-resolution satellite and aerial imagery to show how human activity and natural forces shape our planet. This image: Lithium-rich waters sitting in evaporation ponds in Chile | Daily Overview/DigitalGlobe, a Maxar Company
Most corporate leaders understand that businesses have a key role to play in tackling urgent challenges such as climate change. But many of them also believe that pursuing a sustainability agenda runs counter to the wishes of their shareholders. Sure, some heads of large investment firms say they care about sustainability, but in practice, investors, portfolio managers, and sell-side analysts rarely engage corporate executives on environmental, social, and governance (ESG) issues. The impression among business leaders is that ESG just hasn’t gone mainstream in the investment community.
Source: https://www.wfsb.com/video/2025/06/30/morning-business-report-young-adults-focus-retirement/