A report we first told you about last week could have a big impact on your retirement. Social Security’s surplus reserves are expected to run out in 2034, one year earlier than previously estimated. Yahoo Finance took a deeper look at the impact that will have on you. In other news, new data shows that inflation is hitting us online too. According to CNBC, the growth in digital sticker prices across the industry means e-commerce transactions are on pace to soon account for roughly $1 of every $5 spent by Americans.
Yahoo Finance/Stephanie Asymkos
Here’s how Social Security’s looming shortfall could affect your retirement plans
A new report from the Social Security Administration showing benefits could be reduced sooner than anticipated could set off alarm bells — especially among those planning to retire within the next decade.
Social Security’s surplus reserves are expected to run out in 2033, one year earlier than previously estimated, according to the Trustees of the Social Security and Medicare trust funds. That means the entitlement program will only be able to pay out 76% of scheduled benefits at that time if nothing is done to boost the fund.
“People who are looking to retire in their early 50s or in the next 10 or 15 years can probably expect less than 80% of that benefit,” Kristen Carlisle, general manager of Betterment for Business, told Yahoo Money.
The economic fallout brought on by the pandemic changed Social Security’s funding outlook. Employment, earnings, interest rates, and GDP dropped significantly last year and will recover gradually over the next two years. The pandemic also elevated the mortality rate, slowed the birth rate, and reduced, all of which affected the shortfall projections, the report said.
You can read the full story, here.
Here’s how inflation is hitting the online prices of everything from apparel to furniture
Prices of goods online have now risen for an unprecedented 15 consecutive months, following what was a historical period of declines, according to a new report from Adobe Digital Insights.
Inflation is hitting categories including pet products, nonprescription drugs, apparel, furniture, and flower arrangements, the report said.
The growth in digital sticker prices across the industry means e-commerce transactions are on pace to soon account for roughly $1 of every $5 spent by Americans, up from $1 of every $6 in 2017, Adobe said. Adobe Digital Insights’ economy index tracks more than 1 trillion visits to U.S. retail sites and over 100 million products across 18 categories.
Last month, Adobe found online prices grew 3.1% year over year and climbed 0.1% from the prior month. From 2015 to 2019, online prices on average fell 3.9% annually. Adobe has been tracking its so-called digital economy index since 2014.
Continue reading, here.
Kitco News/Neils Christensen
New York Fed Empire State Survey sees strong recovery, rising to 34.3
The gold market is holding on the line around $1,800 as the New York manufacturing sector sees a strong recovery, according to the latest data from the New York Federal Reserve.
Wednesday, the regional central bank said its Empire State manufacturing survey’s general business conditions index surged higher to a reading of 34.3 in September, up significantly from August’s reading of 18.3. The data was better than expected, as consensus forecasts were calling for a reading around 18.1.
“Manufacturing activity grew swiftly in New York State, according to the September survey,” the report said. “Forty-six percent of respondents reported that conditions had improved over the month, while 12 percent reported that conditions had worsened.”
The recovery in the region’s manufacturing sector comes after it saw a sharp drop in August, falling from 43.
The gold market is not seeing much reaction to the latest economic data; the price is holding around $1,800 an ounce. December gold futures last traded at $1,803.50 an ounce, down 0.20% on the day.
Read the full story, here.