- Local financial advisors share about the dangers of pulling out of retirement funds.
- In a statement, MSUFCU says that they've seen the younger generation pulling out of their savings.
- Video shows neighbors discussing budgeting and saving.
(The following is a transcription of the full broadcast story)
"It's expensive being an adult," newlyweds Reece and Krista Burton of Mason told me.
The Burtons said the last few years have been a wild ride when it comes to finances.
"It's really difficult trying to think about the budget you have to put together, especially for food," Reece Burton said.
Anywhere they can, the Burtons have made changes—including how they manage subscriptions.
"We'll go from Netflix to unsubscribing, to going to Hulu and unsubscribing," Krista Burton said.
The Burtons said they recently made their toughest decision yet—choosing between getting married or moving into a house.
"It's unfortunate that we have to make that decision between the two," Reece Burton said. "So here we are, married and happy, but now we're waiting for the right place with the right price."
And when it comes to saving, Reece Burton said it's a challenge.
"When you receive a paycheck, you'd put 5-10% away," he said. "It's difficult to do that when you have hundreds of dollars in student loans, rent is twice what it used to be, groceries and gas are super expensive. It's not something at the forefront of the mind."
The couple said they are saving less than they would like to.
According to the Bureau of Economic Analysis, the personal savings rate was 4.6% in January, down from 2020, when rates were at 15%.
To see how this national trend is affecting local communities, I reached out to MSU Federal Credit Union. In a statement, the credit union said, "We've observed that younger consumers, including Gen Z and Millennials, have been adapting their savings habits in response to rising costs. While some have had to dip into their savings to manage increased living expenses."
Beyond savings accounts, I wanted to see if neighbors had to tap into retirement accounts. Mason financial advisor Christopher Buck told me that neighbors have largely kept their retirement savings rates unchanged.
"Clients should not take out of retirement plans unless it's a last resort," Buck said.
For the Burtons, they said it's hard to even think about retirement because they don’t feel ready.
"I feel like maybe a little more uneasy about that reality," Reece Burton said. "I think we expect to be working longer than our parents did."
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