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Inflation is why many Americans plan to delay retirement: survey

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Rejoining the workforce after retirement is not always driven by finances, a recent study said. (iStock)

Inflation is moderating, but an increasing number of Americans that are nearing retirement or have already retired are considering delaying their plans or returning to the workforce because of rising prices, a recent survey said.

More than two out of three (68%) of pre-retirees plan to push back their retirement – compared to 64% last year, according to the F&G Annuities & Life survey. Forty-four percent said inflation was the reason why they were altering their plans.  Inflation moderated to 3% in June after reaching a 40-year high two years before. However, the lingering effects of high prices have remained, and the Federal Reserve’s quest to lower inflation by raising interest rates has also increased borrowing rates on everything from car loans to home loans. 

Respondents also cited other reasons for returning to the workforce, saying it  also also offered them an intellectual challenge. A third of people (33%) who are either considering or have pushed back their retirement said they were doing it because they loved what they did for work. The same percentage said they enjoyed the stimulation of working.

“This remains a challenging macroeconomic environment to navigate for those close to or in retirement,” F&G CEO Chris Blunt said. “As our survey shows, Americans are still reconsidering what retirement means to them, which may look different from previous generations. We believe taking a proactive approach in financial planning can help mitigate some of the economic risks, allowing people to focus on their own personalized roadmap of how and when to retire.”

If you’re struggling to save for retirement in the current economy, you could consider paying down high-interest debt with a personal loan at a lower interest rate, which can help you lower your monthly payments. Visit Credible to compare options from multiple lenders at once and choose the one that’s the best for you.

MOST HOMEOWNERS WOULD RATHER REMODEL THEIR HOME THAN BUY ANOTHER HOME: STUDY

Gen X most impacted by high prices

Generation X is the most concerned over the impact of inflation on their retirement plans, with 71% saying they are considering or have pushed back their planned retirement date, up from 65% last year, according to the survey. 

Beyond inflation, 49% of Generation Xers said they were worried they hadn’t saved enough money to retire and 42% said they wanted more financial options and a larger safety net.  

“As Gen Xers near retirement, our study shows that their worries are heightened,” F&G President John Currier said. “Having the right advice and financial tools can help alleviate these concerns, including engaging with a financial professional and considering products like fixed indexed annuities (FIAs) and registered index-linked annuities (RILAs) that can provide a mix of upside potential and downside protection.”

If you are preparing for your retirement, you could consider using a personal loan to help you pay off debt at a lower interest rate, saving you money each month. You can visit Credible to find your personalized interest rate without affecting your credit score.

AMERICANS TYPICALLY SPEND ABOUT 24% OF THEIR INCOME ON MORTGAGE PAYMENTS

Workers estimated they need $1.5 million to retire

Workers said they needed to save $1.5 million to retire comfortably, yet many are far from that target, according to a Northwestern Mutual survey. A third of workers said they had less than $50,000 in savings and investments, and 14% had less than $1,000.

Among the generations closest to retirement, only half of Boomers (49%) and Gen Xers (48%) believe they will be financially prepared to retire comfortably, with many expecting that they will likely outlive their savings. Even more problematic is that while many older Americans across both generations anticipate a retirement shortfall, more than a third (37% and 38%, respectively) have not addressed it.

“People’s ‘magic number’ to retire comfortably has exploded to an all-time high, and the gap between their goals and progress has never been wider,” Aditi Javeri Gokhale, Northwestern Mutual chief strategy officer, head of institutional investments and president of retail investments, said in a statement. “Inflation is expanding our expectations for retirement savings, and putting the pressure on to plan and stay disciplined.” 

If high-interest debt is preventing you from saving more for retirement, you could consider paying it off with a personal loan at a lower interest rate. Visit Credible to find your personalized rate in minutes without affecting your credit score.

71% OF AMERICANS WAITING ON INTEREST RATE CUTS BEFORE HUNTING FOR HOMES: SURVEY

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

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Chinese factories stop production, eye new markets as U.S. tariffs hit

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Textile manufacturing workers in Binzhou, Shandong, China, on April 23, 2025.

Nurphoto | Nurphoto | Getty Images

BEIJING — Chinese manufacturers are pausing production and turning to new markets as the impact of U.S. tariffs sets in, according to companies and analysts.

The lost orders are also hitting jobs.

“I know several factories that have told half of their employees to go home for a few weeks and stopped most of their production,” said Cameron Johnson, Shanghai-based senior partner at consulting firm Tidalwave Solutions. He said factories making toys, sporting goods and low-cost Dollar Store-type goods are the most affected right now.

“While not large-scale yet, it is happening in the key [export] hubs of Yiwu and Dongguan and there is concern that it will grow,” Johnson said. “There is a hope that tariffs will be lowered so orders can resume, but in the meantime companies are furloughing employees and idling some production.”

Around 10 million to 20 million workers in China are involved with U.S.-bound export businesses, according to Goldman Sachs estimates. The official number of workers in China’s cities last year was 473.45 million.

President Trump says U.S. met this morning with China, declines to identify individuals involved

Over a series of swift announcements this month, the U.S. added more than 100% in tariffs to Chinese goods, to which China retaliated with reciprocal duties. While U.S. President Donald Trump on Thursday asserted trade talks with Beijing were underway, the Chinese side has denied any negotiations are ongoing.

The impact of the recent doubling in tariffs is “way bigger” than that of the Covid-19 pandemic, said Ash Monga, founder and CEO of Guangzhou-based Imex Sourcing Services, a supply chain management company. He noted that for small businesses with only several million dollars in resources, the sudden increase in tariffs might be unbearable and could put them out of business.

He said there’s so much demand from clients and other importers of Chinese products that he’s launching a new “Tariff Help” website on Friday to help small business find suppliers based outside China.

Livestreaming

The business disruption is forcing Chinese exporters to try new sales strategies.

Woodswool, an athleticwear manufacturer based in Ningbo, near Shanghai, quickly turned to selling the clothes online in China via livestreaming. After launching the sales channel about a week ago, the company said it’s received more than 30 orders with gross merchandise value of more than 5,000 yuan ($690).

It’s a small step toward salvaging lost business.

“All our U.S. orders have been canceled,” Li Yan, factory manager and brand director of Woodswool, said in Mandarin, translated by CNBC.

More than half of production once went to the U.S., and some capacity will be idle for two to three months until the company is able to build up new markets, Li said. He noted the company has sold to customers in Europe, Australia and the U.S. for more than 20 years.

The venture into livestreaming is part of an effort by major Chinese tech companies, at the behest of Beijing, to help exporters redirect their goods to the domestic market.

Woodswool is selling its products online through Baidu, whose search engine app also includes a livestreaming e-commerce platform. Li said he chose the company’s virtual human livestreaming option since it allowed him to get up and running within two weeks, without having to spend time and money on renovating a studio and hiring a team.

Baidu said it has worked with at least several hundred Chinese businesses to launch domestic e-commerce channels after this month announcing it would provide subsidies and free artificial intelligence tools — such as its “Huiboxing” virtual humans — for 1 million businesses. The virtual humans are digitally recreated versions of people that use AI to mimic sales pitches and automate interactions with customers. The company claimed that return on investment was higher than that of using a human being.

Domestic market challenges

E-commerce company JD.com was one of the first to announce similar support, pledging 200 billion yuan ($27.22 billion) to buy Chinese goods originally intended for export — and find ways to sell them within China. Food delivery company Meituan has also announced it would help exporters distribute domestically, without specifying an amount.

However, $27.22 billion is only 5% of the $524.66 billion in goods that China exported to the U.S. last year.

“A few businesses have told us that under 125% tariffs, their business model is not workable,” Michael Hart, president of the American Chamber of Commerce in China, told reporters Friday. He also noted more competition among Chinese companies in the last week.

Tariffs from both countries will likely remain in place at a certain level, with exemptions for certain tariffs, Hart said. “That’s exactly what they’re backing into.”

Products branded and developed for a suburban U.S. consumer might not directly work for a Chinese apartment dweller.

Manufacturers have gone directly to Chinese social media platforms Red Note and Douyin, the local version of TikTok, to ask consumers to support them, but fatigue is growing, pointed out Ashley Dudarenok, founder of ChoZan, a China marketing consultancy.

Looking outside the U.S.

Fewer and fewer Chinese companies are considering diverting exports to the U.S. through other countries, given rising U.S. scrutiny of transshipments, she said. Dudarenok added that many companies are diversifying production to India over Southeast Asia, while others are turning from U.S. customers to those in Europe and Latin America.

Some companies have already built businesses on other trade routes from China.

Liu Xu runs an e-commerce company called Beijing Mingyuchu that sells bathroom products to Brazil. While his business has run into challenges from fluctuating exchange rates and high container shipping costs, Liu said he expects trade with Brazil will ultimately not be that affected by China’s tensions with the U.S.

China’s exports to Brazil have doubled between 2018 and 2024, as have China’s exports to Ghana.

During the Covid-19 pandemic, Ghana-based Cotrie Logistics was founded to help businesses with sourcing, coordinate shipments amid port delays and build dependable logistics routes, said CEO Bright Tordzroh. The company primarily works in trade between China and Ghana and now makes $300,000 to $1 million annually, he said.

The U.S.-China trade tensions have led many companies to explore sourcing and manufacturing locations outside the United States, Tordzroh said, which he hopes can create more opportunities for Cotrie.

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These are 3 big things we’re watching in the stock market this week

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A security guard works outside the New York Stock Exchange (NYSE) before the Federal Reserve announcement in New York City, U.S., September 18, 2024. 

Andrew Kelly | Reuters

The stock market bounce last week showed once again just how dependent Wall Street has become on the whims of the White House.

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These U.S. consumer stocks face higher China risks

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