As the increased likelihood of a recession looms, savers and investors across all age groups are wondering how it will affect their financial position. But concerns and needs vary widely depending on their circumstances. Lessons from the 2008 recession can help provide some insight into how different age groups could be impacted by an economic downturn.
People who are nearing retirement might be questioning whether they need to delay their plans and have concerns about heading into retirement with increased prices. Those in their peak earning years are likely feeling the loss of buying and borrowing power, as well as the impact of market declines. And younger adults early in their careers might become fearful of the market or feel like they don’t have enough to save because their current income is not going as far.
Whatever challenges different audiences might be facing in the event of a recession, content can be a solution to educate, provide actionable advice and ease fears. Here’s a look at three key age groups, the challenges and needs they are facing in the current economic environment, and insights from the Great Recession.
To help you – as well as your audiences – feel more financially secure at any age during this time, here are three key questions to encourage your audience to ask themselves:
- Do I have an emergency fund?
- If not, prioritize building one that can cover three to six months’ worth of living expenses.
- Is my asset allocation appropriate for my age?
- Generally, the longer your time horizon to retirement the more of your portfolio you should hold in stocks.
- Can I pay down any high-interest debt now?
- Now is a good time to stay on top of debt that could be impacted by a rising rate environment.
While these questions apply to all ages, each group will have specific needs — and content can help meet them wherever they are in their financial journey during these uncertain times.
How are you planning to connect with savers and investors as the possibilities of a recession looms? Send us a message, we’d love to help you with your content strategy.
Sources:
1 Fabian T. Pfeffer, Sheldon Danziger, and Robert F. Schoeni, “Wealth Disparities Before and After the Great Recession,” The Annals of the American Academy of Political and Social Science 650, no. 1 (2013): 98-123.
2 Fabian T. Pfeffer, Sheldon Danziger, and Robert F. Schoeni, “Wealth Disparities Before and After the Great Recession,” The Annals of the American Academy of Political and Social Science 650, no. 1 (2013): 98-123.
3 “A Lost Generation? Long-Lasting Wealth Impacts of the Great Recession on Young Families,” Federal Reserve Bank of St. Louis, 2018
