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Yahoo
27-05-2025
- Business
- Yahoo
Tariffs and Social Security Cuts Among Boomers' Top Worries: 2 Ways To Prepare For the Worst
Many boomers feel their finances are on shaky ground, even if they have the stability that typically comes with being a homeowner. A recent report from Point, a home equity investment platform, found that nearly half (47%) of homeowners over 60 say they feel less financially secure than they did a year ago, and 48% are uncertain about their financial situation over the next 12 months. Find Out: Read Next: Among U.S. homeowners ages 60 and older, 79% are at least somewhat concerned about the possibility of a recession in the next 12 months and 73% believe tariffs will make their financial situation worse in the next 12 months. In addition, among homeowners of all ages who currently collect or plan to collect Social Security in the next 12 months, 73% are concerned about the potential of benefit cuts. Here's a closer look at whether these concerns are warranted, and what boomers can do now to financially prepare for the worst. While tariff policies are constantly in flux, increased costs have already been rolling out. 'When and where we've seen the announced tariffs stick, consumer prices have started to increase,' said Aaron Terrazas, economist for Point. 'That reduces the real purchasing power of anyone who buys those goods.' This can be particularly difficult to navigate for retirees who are living on a fixed income. Learn More: The majority of homeowners ages 60 and above are concerned about the possibility of a recession, the report found — and it's not just boomers who have these worries. 'That is also the majority consensus among Wall Street economists,' Terrazas said. 'Of course, recessions are notoriously difficult to predict and over the past few years we've seen consistently elevated recession fears that have not yet come to pass. But even if they are just fears that never materialize, recession worries can dampen spending and investment decisions leading to slower growth, even if it falls short of an economic contraction.' President Donald Trump has promised he would not make cuts to Social Security, but many beneficiaries are still concerned these could be on the table. 'Congress is still negotiating the details for the federal budget and possible tax legislation, so we don't yet know what changes might be included,' Terrazas said. 'In the past, direct cuts to the benefits that current Social Security recipients get are rare; more often we have seen cuts to the benefits that future recipients can expect. 'The fact that so many current recipients are concerned speaks to fragile household finances after years of high inflation and, more recently, a decline in the stock market.' With so many unknowns, it's best to err on the side of caution and take proactive steps now to protect your finances from whatever may be on the horizon. Terrazas said the first step boomers should take is to seek professional advice. 'First and foremost, it's important to work with a financial advisor as you approach retirement to ensure that you have sufficient income if a recession were to hit or if inflation were to spike during the initial years out of the workforce,' he said. In addition, boomers may want to reevaluate their spending. 'It may make sense to temporarily reduce spending.' Terrazas said, 'and access liquid savings to avoid drawing down asset wealth when the stock market is momentarily down.' More From GOBankingRates 10 Genius Things Warren Buffett Says To Do With Your Money This article originally appeared on Tariffs and Social Security Cuts Among Boomers' Top Worries: 2 Ways To Prepare For the Worst
Yahoo
04-04-2025
- Business
- Yahoo
Despite weak freight market, trucking jobs soared in March
Truck transportation jobs in March rose the most in a month since the beginning of 2022. The increase of 9,600 jobs that went along with a larger-than-normal increase in nonfarm payrolls for the country (up 228,000 jobs) was the largest since an increase of 10,400 jobs in January 2022. That month was nearing the end of what is generally considered the strongest freight market in recent history. This month's increase came during a time when the most optimistic voices are hoping for an improvement by the end of the year. The monthly numbers released Friday by the Bureau of Labor Statistics also reported a revision of January and February numbers that resulted in the February figure actually being down 2,800 jobs between January and February, larger than the original end result is that at 1,525,900 jobs, employment in truck transportation is less than it was a year ago (when it was 1,531000 jobs), but the highest since April 2024. The record employment in the sector was 1,587,900 jobs in July 2022, which would have been after the peak activity in the post-pandemic freight boom. Meanwhile, warehousing and storage jobs went in the opposite direction, falling to 1,822,400 jobs, down from 1,831,800 jobs, a drop of 9,400 jobs. There also were downward revisions for January and February, which means that what a month ago was a report of 1,840,500 warehouse jobs in January now is a total more than 18,000 jobs below that. The transportation sector as a whole posted job gains of 22,900 jobs, accounting for more than 10% of the 228,000 increase in jobs reported in nonfarm payrolls. Much of that came from yet another huge increase in the couriers category, which was up 15,800 jobs. Revisions in January and February numbers mean that between those two months, 24,300 jobs were added in the couriers of certain labor disputes is believed to be a big reason for the gain in the courier numbers. Aaron Terrazas, an economist who studies labor markets with a particular emphasis on transportation, said the overall increase in transportation numbers was about double what it normally is. The gains were 'overwhelmingly driven by robust hiring among package delivery services for the fourth month in a row.' Terrazas also noted the big jump in truck transportation in a market dogged by pessimism. 'The strong reported hiring in the freight sector feels very contrary to industry sentiment of continued softness in the freight market, perhaps reflecting temporary activity as businesses tried to front-run new tariffs,' he wrote in an email to FreightWaves. Mazen Danaf, an economist with Uber Freight (NYSE: UBER), described the increase in truck transportation jobs as 'counter-seasonal and counter-cyclical.' 'This uptick might represent a delayed hiring response following January's temporary spot market tightening due to weather disruptions, which preceded an anticipated collapse similar to the previous year,' he said in an email to FreightWaves. 'However, given the persistent signs of stagnant demand, I do not expect this trend to persist.' Manaf went so far as to already project a drop in employment this month. In other highlights from the monthly report: Rail jobs totaled 153,600, a decline of 700. After revisions in January and February numbers, rail employment is down 1,100 jobs in just two months, a large decline in a sector where changes are generally just 100-200 at a time, up or down. The hourly earnings of nonsupervisory employees in truck transportation has now been above $30 per hour for four consecutive months. That data is on a one-month lag and climbed to $30.50 in February, up from $30.09. The previous high was $30.16 in December, so this latest figure is a significant rise given that it is usually measured in much smaller increments. More articles by John Kingston Clash on legal status of California transportation waivers highlighted at TCAATBS says independent drivers earned a little more in '24 but drove more as well Truck driver triumphs at Supreme Court in case involving marijuana testing The post Despite weak freight market, trucking jobs soared in March appeared first on FreightWaves.
