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    Seven Republican-led states sue to block Biden’s sweeping student loan forgiveness plan

    Seven Republican-led states have sued the U.S. Department of Education to block the Biden administration from carrying out its sweeping new student loan forgiveness plan.
    In the lawsuit, the states — Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota and Ohio — say the department’s new effort to forgive student debt, like its previous attempts, which were blocked by the courts, is illegal.
    It also claims the department already instructed its loan servicers to begin canceling the eligible loans as early as Sept. 3, which would violate timing restrictions around the rulemaking process.

    The U.S. Department of Education in Washington, D.C.
    Caroline Brehman | CQ-Roll Call, Inc. | Getty Images

    Seven Republican-led states have sued the U.S. Department of Education to block the Biden administration from carrying out its sweeping new student loan forgiveness plan.
    In the lawsuit, the states — Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota and Ohio — say the department’s new effort to forgive student debt, like its previous attempts, which were blocked by the courts, is illegal.

    The states accuse the Biden administration of trying to “unlawfully … mass cancel hundreds of billions of dollars of loans” without approval from Congress and allege that the Education Department already instructed its loan servicers to begin canceling the eligible loans as early as Sept. 3, which would violate timing restrictions around the rulemaking process.
    The Education Department is expected to publish the final rule on its debt relief sometime in October. The states say they “just uncovered documents” showing the department could act sooner, skirting federal regulations.
    A spokesperson for the Education Department declined to comment on the pending litigation.
    “But we will continue to fight for borrowers across the country who are struggling to repay their federal student loans,” they said.
    There is debate over what the exact costs of the new debt relief plan will be, but one estimate puts its price tag at around $147 billion, rather than the hundreds of billons of dollars alleged by the states.

    The lawsuit is the latest attempt by Republicans to prevent President Joe Biden from reducing or eliminating people’s student loan balances. Experts have predicted that Biden could try to deliver the relief to tens of millions of Americans just weeks before the election.
    The Biden administration began working on its do-over student loan forgiveness plan after the Supreme Court blocked its first policy in June 2023. The revised relief plan targets four groups of borrowers, including those who owe more than they originally borrowed and graduates of low-value programs. Some 25 million people could benefit.
    Its new affordable repayment plan, known as SAVE, is also on hold amid a slew of legal challenges. SAVE comes with two key provisions that lawsuits have targeted: It has lower monthly payments than any other federal student loan repayment plan, and it leads to quicker debt forgiveness for those with small balances. More

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    Cooper Union college restores free tuition for graduating seniors

    Cooper Union for the Advancement of Science, in the heart of New York City, is returning to full-tuition scholarships for all graduating seniors over the next four years.
    The college is working its way back to providing free tuition for every student — a promise it was founded on.

    Cooper Union’s Foundational Building, left, and 41 Cooper Square facility, right, in New York’s Greenwich Village.
    Image source: Mario Morgado

    In a move years in the making, the Cooper Union for the Advancement of Science announced Tuesday a return to full-tuition scholarships for all graduating seniors.
    The New York City-based private college, founded in 1859, had long been tuition-free for all grade levels. But in 2014 it dialed back its longtime commitment that education be “as free as air and water” and began offering students only half-tuition scholarships.

    A few years later, the school presented a 10-year plan to restore full-tuition scholarships through saving, cost cutting and fundraising. Now roughly half of the student body attends tuition-free, and, on average, undergraduates pay less than 15% of the college’s $44,550 tuition, according to the school. There are currently 891 undergraduate students enrolled, including 228 seniors.
    More from Personal Finance:Nearly half of student loan borrowers expect debt forgivenessThe sticker price at some colleges is now nearly $100,000 a yearMore of the nation’s top colleges roll out no-loan policies
    “In 2018, we began an ambitious journey to provide full-tuition scholarships for all of our undergraduate students,” outgoing school President Laura Sparks said in a statement. “Thanks to the generosity of three extraordinary alumni donors, we are removing a major financial burden for our graduating classes and reaffirming the ideals that have been foundational to this institution since Peter Cooper opened its doors in 1859.” (Cooper was an industrialist and philanthropist who, before founding Cooper Union, also invented the first American steam train in 1829.)
    Current seniors will receive refunds for any tuition payments made for the fall semester and will not have to pay for the spring semester. First-, second- and third-year students will receive full-tuition scholarships in their senior years, according to the school.
    “Cooper has long been a leader in full-tuition scholarships for all students, dating back to its founding,” said Robert Franek, editor-in-chief of The Princeton Review. “This decision is a massive step forward to fulfilling that goal.”

    Colleges and universities are struggling

    When Cooper Union began offering students only half-tuition scholarships, there was an initial drop in applicants. The decline in total applications and increase in the number of students admitted caused the acceptance rate to jump to 14.4% that year, up from 7.7% a year earlier. Currently, the college has an acceptance rate of 12%.
    Other schools, too, have been under pressure from declining enrollment. Not only are fewer students interested in pursuing any sort of degree after high school, but the population of college-age students is also shrinking, a trend referred to as the “enrollment cliff.”

    Steadily, college is becoming a path for only those with the means to pay for it outright, other reports also show. The rising cost and ballooning student loan balances have become a massive burden for undergraduates and their families, resulting in a college affordability crisis across the board.
    As a result, many colleges and universities are struggling amid fewer students and declining tuition revenue, according to Colin Hatton, senior consultant of NEPC’s endowments and foundations team.
    “The higher educational system is under stress,” Hatton told CNBC earlier this year.

    Making college affordable could help

    To stay competitive, some institutions are trying to make college more accessible, in part by eliminating education debt from the outset. 
    Such efforts could likely result in more students applying, which can also boost a college’s yield — or the percent of students who choose to enroll after being admitted — which is an important statistic for schools, according to Franek. It could also help the bottom line.

    Meanwhile, New York state has been trying to get more graduating high school seniors interested in attending the state’s public colleges through automatic acceptance letters and its own free-tuition program.
    The Excelsior Scholarship applies to all schools at City University of New York and State University of New York. It was the first in the nation to cover four years of tuition without being tethered to academic performance, although research shows only a fraction of eligible students are Excelsior recipients.
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    44% of workers are ‘cautiously optimistic’ about meeting retirement goals, CNBC poll finds. Here are key planning steps at every age

    YOUR GUIDE TO NAVIGATING YOUR FINANCIAL FUTURE

    Almost half, 44%, of workers in a new CNBC poll are “cautiously optimistic” about their ability to meet their retirement goals, and 27% say they are “realistic” about that happening. 
    About half, 52%, of millennials and 47% of Gen Xers said “paying off debts or loans” is the main reason they feel behind in retirement planning or savings. 
    Eighty-two percent of workers in that survey say achieving a comfortable retirement is “much harder or somewhat harder” to achieve than it was for their parents.

    Many American workers are optimistic about their retirement goals, but most believe it will be challenging for them to retire comfortably. 
    Almost half, 44%, of workers in a new CNBC poll are “cautiously optimistic” about their ability to meet their retirement goals, and 27% say they are “realistic” about that happening. 

    Even so, 82% of workers in that survey say achieving a comfortable retirement is “much harder or somewhat harder” to achieve than it was for their parents. A majority, 69%, are concerned about being able to afford to stop working or retire fully and 80% worry that Social Security will not be enough to live on in retirement.  
    The CNBC report, conducted by SurveyMonkey, polled 6,657 U.S. adults, including 2,603 who are retired and 4,054 who are working full time or part time, are self-employed or who own a business.

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    Here’s a look at more stories on how to manage, grow and protect your money for the years ahead.

    The decline in traditional pensions, the rising cost of health care and increasing life expectancy have contributed to workers’ need to rethink their retirement plans.
    “Retirement itself is being retired,” said Joseph Coughlin, director of the Massachusetts Institute of Technology AgeLab. “Often, within a year, two years, they found out that, frankly, they either need more money or need something to do.” 
    Here are smart moves you can make at every age to make it easier to meet your retirement goals: 

    In your 20s & 30s: Maximize tax-advantaged savings

    Many younger workers in the CNBC poll — including 43% of Gen Z and millennials, who are in their 20s to early 40s — are “cautiously optimistic” about their ability to meet their retirement goals.
    For people in their 20s and 30s, “retirement” is far away and means having the financial freedom to be “working because we want to, not necessarily because we have to,” said certified financial planner Rianka Dorsainvil, founder of YGC Wealth in Lanham, Maryland, and a CNBC Financial Advisor Council member.

    Starting to invest for retirement early, especially in tax-advantaged accounts, helps you make the most of your time investing in the market and leverage the power of compound interest. 
    Various work opportunities can offer flexibility in options to save for the future. Many people in their 20s may work a 9-to-5 job and have a “side gig” or part-time job in the evenings or weekends.
    That means you could save in a 401(k) plan at work as well as a self-employed retirement plan, like a Simplified Employee Pension-Individual retirement account or Solo 401(k) on your own, said Nate Hoskin, a certified financial planner and founder of Hoskin Capital in Denver, Colorado. 
    While you may have opened a 401(k) plan in your first job, aim to increase the percentage you contribute each year. Put in at least enough money to get the company’s full matching contribution.
    Traditional IRAs and 401(k) plans give you an upfront tax break. Making contributions with pre-tax money lowers your taxable income now, but you’ll have to pay taxes when you withdraw the money in retirement at your future tax rate.
    Roth accounts, which let you contribute after-tax dollars that then grow and can be withdrawn in retirement tax free, can also be a smart bet for young workers who qualify.

    Lordhenrivoton | E+ | Getty Images

    In your 40s: Monitor rising expenses 

    While you’re in your peak earning years, expenses can also rise quickly. About half, 52%, of millennials and 47% of Gen Xers in the CNBC poll said “paying off debts or loans” is the main reason they feel behind in retirement planning or savings. 
    In that case, “it’s probably time to reassess financial goals,” said Dorsainvil. Focus on paying down credit card and high-interest debt and boosting your emergency savings so that you won’t be forced to dip into retirement savings for unexpected expenses.
    Also, be careful of “lifestyle creep.” You don’t necessarily need to spend more just because you are making more. Don’t let the cost of your lifestyle increase faster than your income. See what expenses you can reduce or cut out.

    In your 50s: Estimate your retirement income   

    The CNBC poll finds that 48% of GenXers hope to have saved $500,000 or more for retirement, yet the same share have currently saved $50,000 or less. Nearly 20% of this age group are “not sure” how much money they will need to spend each year on living expenses and other purchases in retirement.
    In your 50s, it’s time to turbocharge your savings and start crunching the numbers to determine how much income you will have in retirement.
    “Not enough people actually do financial planning, so they’re not aware of the numbers that they’re faced with early enough,” said Catherine Valega, a CFP and founder of Green Bee Advisory in Winchester, Massachusetts.

    Starting at 50, you can boost your retirement savings with “catch-up” contributions. In 2024, the maximum you can contribute to a 401(k) is $23,000, but the IRS allows you to add an extra $7,500 if you’re 50 or older. For an individual retirement account (IRA), the maximum contribution for 2024 is $7,000, with an additional $1,000 if you’re 50 or older.
    Online calculators can show you how much your retirement savings might grow between now and your anticipated retirement, and how much that balance it might provide in monthly income. Also, factor in how much money you may get from Social Security.
    Even if you think you’re behind in saving, estimating your retirement income presents an opportunity to figure out how to make it work, said Valega.
    “We’re not going to dwell on what you’ve done in the past. Let’s start today with what we have,” she said. “What are our assets? What are income-producing abilities, capabilities? And then we’re going to move forward.”

    In your 60s: Test drive your retirement 

    Shapecharge | E+ | Getty Images

    While 38% of baby boomers in their 60s and 70s say they are “on schedule” with retirement planning and savings, according to the CNBC poll, 41% say they are “behind schedule.” 
    As you enter your 60s, and are closer to retirement, take your retirement for a test drive. Think about what you will do, who you will do it with and where you will do it. 
    For example, Coughlin said to ask yourself: “What will you do on any given Tuesday? There will be many Tuesdays with expenses, challenges and opportunities.”

    Many people today live well into their 90s and beyond. While travel, pursuing hobbies and interests and spending time with family are what most people of all ages say they will “ideally” do in retirement, the CNBC poll finds those who think they will “realistically” be able to do so are much lower.
    Once you identify your aspirations, do a test run of the lifestyle and the location. Use your time off from work to engage in activities you think you’d like to do and vacation in the places where you think you’d like to live. Also, test drive your retirement budget by comparing housing, transportation, food, entertainment and health care costs in that area to what you’re paying now. See if you can stick to that new budget for a few months while still working.
    No matter your age, Hoskin said, stick to some basic rules to achieve financial security: “You still need to spend less than you make, save a significant portion of your income, locate that money in the correct accounts, and invest it for the future,” he said. “That is the cycle that creates generational wealth.”
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    40% of workers are behind on retirement planning. Not saving earlier was the biggest mistake

    YOUR GUIDE TO NAVIGATING YOUR FINANCIAL FUTURE

    Four in 10 American workers are behind on retirement planning and savings, according to a new CNBC survey.
    Not starting earlier tops Americans’ greatest financial regrets.
    “If you do less at 30, you’ll still have more at 60 than if you did more at 50,” one expert says.

    Thomas Barwick

    Molly Richardson, 35, regularly contributes to her 401(k) plan, but the structural engineer says she isn’t too worried about retirement yet.
    “It’s always something I felt like I could wait until I’m 50 to figure out,” she said.

    Like many other working adults, Richardson says she has more pressing expenses for now, such as the mortgage on her home in Jacksonville, Florida, car loans and student debt.
    Still, the married mother of one admits she doesn’t have a clear savings goal once those other financial obstacles are out of the way.
    “It’s hard to estimate how much we are actually going to need,” she said. “There are question marks.”

    In fact, 4 in 10 American workers — 40% — are behind on retirement planning and savings, largely due to debt, insufficient income or getting a late start, according to a new CNBC survey, which polled more than 6,600 U.S. adults in early August.
    Older generations closer to retirement age are more likely to regret not saving for retirement early enough, the survey found: 37% of baby boomers between ages 60 and 78 said they felt behind, compared to 26% of Gen Xers, 13% of millennials and only 5% of Gen Zers over the age of 18.

    “There are so many individuals, young, mid-career and deep into their career, that are not saving enough for a healthy and secure retirement,” said Jacqueline Reeves, the director of retirement plan services at Bryn Mawr Capital Management.

    By some measures, retirement savers, overall, are doing well.
    As of the second quarter of 2024, 401(k) and individual retirement account balances notched the third-highest averages on record and the number of 401(k) millionaires hit an all-time high, helped by better savings behaviors and positive market conditions, according to the latest data from Fidelity Investments, the nation’s largest provider of 401(k) savings plans.
    The average 401(k) contribution rate, including employer and employee contributions, now stands at 14.2%, just below Fidelity’s suggested savings rate of 15%.

    And yet, there is still a gap between what savers are putting away and what they will need once they retire.
    Although many employees with a workplace plan contribute just enough to take advantage of an employer match, “9% [considering a typical 5% savings rate and 4% match] mathematically speaking, will not provide enough in that piggy bank,” Reeves said.
    “They call it a ‘standard safe harbor match’ for a reason,” she added. “Further in our career, we should be saving 15% to 20%.”

    I don’t think you ever feel completely caught up.

    Lisa Cutter
    Higher education administrator

    “I don’t think you ever feel completely caught up,” said Lisa Cutter, 56, from Terre Haute, Indiana.
    Cutter, who works as an administrator in higher education, explained that it took a while before she could put anything at all toward long-term savings.
    “When I first entered the workforce, I was a classroom teacher and I had no money; I was broke,” Cutter said.
    Now Cutter, who is a single mom, has to prioritize her savings. She relies on the retirement tools and calculators that come with her employer-sponsored plan to stay on track.
    “I would probably like to retire around 67,” she said.

    The retirement savings shortfall

    Other reports show that a retirement savings shortfall is weighing heavily on Americans as they approach retirement age.
    LiveCareer’s retirement fears survey found that 82% of workers have considered delaying their retirement due to financial reasons, while 92% fear they may need to work longer than originally planned. 
    Roughly half of Americans worry that they’ll run out of money when they’re no longer earning a paycheck — and 70% of retirees wish they had started saving earlier, according to another study by Pew Charitable Trusts.
    And among middle-class households, only 1 in 5 are very confident they will be able to fully retire with a comfortable lifestyle, according to recent Retirement Outlook of the American Middle Class report by Transamerica Center for Retirement Studies. The middle class is broadly defined as those with an annual household income between $50,000 and $199,999.
    “America’s middle class is navigating the turbulent post-pandemic economy and high rates of inflation,” said Catherine Collinson, CEO and president of Transamerica Institute. “They are focused on their health and financial well-being, but many are at risk of not achieving a financially secure retirement.”

    Not saving for retirement earlier is great regret

    “If you do less at 30, you’ll still have more at 60 than if you did more at 50,” said Bryn Mawr’s Reeves.
    More than any other money misstep, 22% of Americans said their biggest financial regret is not saving for retirement early enough, according to another report by Bankrate. 
    But there’s no easy way to make up for lost time.
    “Inflation and high prices are cited as the biggest obstacle to progress in addressing our financial regrets,’ said Greg McBride, chief financial analyst at Bankrate.com. “Don’t expect an overnight fix.”
    There are, however, habits that can help.

    How to overcome a savings gap

    Saving for retirement can be “automated through payroll deduction, direct deposit and automatic transfers,” McBride said. “Start modestly and after a couple of pay periods, you won’t miss what you don’t see.”
    In addition to automatic deferrals, Reeves recommends opting into an auto-escalation feature, if your company offers it, which will automatically boost your savings rate by 1% or 2% each year.
    Savers closer to retirement can even turbocharge their nest egg.
    “Everybody hits 50 and is like, ‘wait a minute,'” Reeves said, so “there are other opportunities layered on, because many people are caught at that juncture.”
    Currently, “catch-up contributions” allow savers 50 and older to funnel an extra $7,500 into 401(k) plans and other retirement plans beyond the $23,000 employee deferral limit for 2024.
    It’s also important to create a separate savings account for emergency money, Collinson advised, “which will help you avoid tapping into your retirement account when disaster strikes.”
    Similarly, make sure you are properly insured and employable by staying up to date on the latest technology and training, she added, to avoid potential income disruptions.
    “The single most important ingredient is access to meaningful employment throughout your working years,” Collinson said.
    Most experts recommend meeting with a financial advisor to shore up a long-term plan. There’s also free help available through the National Foundation for Credit Counseling.  
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    Relocating retirees want lower costs of living and better lifestyles. Moving abroad may be the answer

    YOUR GUIDE TO NAVIGATING YOUR FINANCIAL FUTURE

    As seniors aim to reduce living expenses and boost their quality of life, settling abroad could be appealing, financial experts say.
    More than 450,000 retirees were receiving Social Security benefits outside the U.S., as of December 2023, up from fewer than 250,000 retirees in December 2003.
    Retirees could save on housing and health care, but need to consider several factors before moving overseas.

    Mario Martinez | Moment | Getty Images

    Seniors looking to reduce expenses while also boosting their quality of life may find the idea of settling abroad appealing, financial experts say.
    To that point, nearly one-third of retirees have relocated either domestically or outside the country after leaving the workforce, according to a new CNBC survey, which polled more than 6,600 U.S. adults in early August.

    Some of the top reasons for retiree moves were a lower cost of living, a more comfortable lifestyle or better weather, the survey found.   

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    While many older Americans have opted for a less expensive city or state, others are choosing to spend their golden years abroad. 
    More than 450,000 retirees were receiving Social Security benefits outside the U.S., as of December 2023, according to the latest Social Security Administration data. That’s up from less than 250,000 retirees in December 2003.   
    “Each year, there are more and more,” said certified financial planner Leo Chubinishvili with Access Wealth in East Hanover, New Jersey. “And I think that will continue to grow.” 

    Despite cooling inflation, higher costs are still prompting significant changes to retirement plans, a 2024 survey from Prudential Financial found.

    Meanwhile, roughly 45% of U.S. households are predicted to fall short of money in retirement by leaving the workforce at age 65, according to a Morningstar model that analyzed spending, investing, life expectancy and other factors. 
    But some retirees can stretch their nest egg by living somewhere with a lower cost of housing, health care and other expenses, depending on their needs, Chubinishvili said.

    Many who move want ‘cultural exchange’

    Some retirees are also motivated to move abroad for the “cultural exchange,” said CFP Jane Mepham, founder of Austin, Texas-based Elgon Financial Advisors, where she specializes in international planning.  
    “There’s a sense of adventure,” she said. “People really want to travel.”
    However, retiring overseas does require advanced planning. For example, you’ll need to understand visa and residency requirements, local laws, international taxes and other logistics.
    Plus, you’ll need to research whether you can get into your new country’s health system or whether you’ll need to purchase private insurance. Medicare won’t cover you abroad, Mepham said.

    Consider your ‘life priorities’

    “For many people, [living abroad] could be a money-saving option, depending on how they want to live their lives,” said CFP Jude Boudreaux, partner and senior financial planner with The Planning Center in New Orleans, who works with several expat clients.
    But other factors, like proximity to aging parents or grandchildren, can weigh heavily on the decision, said Boudreaux, who is also a member of CNBC’s Financial Advisor Council.
    To that point, of retirees who moved, some 36% wanted to be closer to family, only slightly lower than the 37% seeking a lower cost of living, according to the CNBC survey.

    But your retirement, including a choice to live abroad, could change later, depending on your circumstances, he said.
    “Everybody makes decisions based on their life priorities,” Boudreaux said. “Being clear about that helps people make good choices.”
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    Nvidia is a no-go for over half of this ultra-rich club’s members with assets worth $165 billion

    Over half of Tiger 21’s members don’t invest in Nvidia, according to a recent asset allocation report released by the network of ultra high net worth investors and entrepreneurs.
    Of the 43% members who have invested in Nvidia, most do not intend to add more stock, amid worries that its has already run up too high.
    Nvidia shares slumped 9.5% overnight, wiping about $280 billion of its market cap, amid a broad sell-off in U.S. markets.

    Sopa Images | Lightrocket | Getty Images

    More than half of Tiger 21’s members don’t invest in Nvidia, according to a recent asset allocation report released by this network of ultra-high-net-worth investors and entrepreneurs.
    The network’s second-quarter asset allocation report revealed that 57% of its members are not invested in chip darling Nvidia, with a bulk of the members who have chosen to stay away from the stock saying they do not intend to start a position in the company.

    “While Nvidia is the undisputed leader in AI at the moment, no company’s growth lasts forever, and competitors often catch up, leading to a recalibration of the market,” said Michael Sonnenfeldt, chairman of the ultra-rich club. Its members’ personal assets are collectively worth over $165 billion, according to data provided by Sonnenfeldt.
    Members of the group, which was set up in 1999 by Sonnenfeldt, share advice with each other on wealth preservation, investments and philanthropic endeavors.

    Tiger 21 has 123 groups in 53 markets. The network has over 1,450 members.
    Of the 43% members who have invested in Nvidia, most do not intend to add more stock, amid worries that it has already run up too high.
    Those fears appear to have been well-founded with Nvidia’s stock tanking 9.5% overnight, wiping about $280 billion of its market cap, amid a broad sell-off in U.S. markets.

    A sizable 43% of the club’s members surveyed also expect Nvidia’s success to not last the next decade.
    Some members have chosen to avoid technology altogether, and hence there’s no Nvidia in their portfolio, preferring real estate or other sectors, said Sonnenfeldt.
    “For others, it is due to the nature of tech investing today. Tiger 21 members watched Tesla rise only to now have almost all major auto manufacturers offer an EV, so while Nvidia is the leader today, some Tiger 21 members believe it is only a matter of time before the competition catches up,” he said.
    Sonnenfeldt also said that the club’s members are more focused on preserving wealth rather than chasing high returns.
    “They could be avoiding Nvidia due to its volatility and the risks associated with tech investments, despite its impressive growth,” he said.
    Nvidia, which has been dubbed as ‘the world’s most important stock,’ rode the artificial intelligence boom to a $3 trillion market cap earlier this year, surging almost nine-fold since the end of 2022. 
    The company’s meteoric growth, however, stalled a bit this summer. On Aug. 7, the stock tumbled about 27% to trade below its all-time high hit in June.
    Nvidia led semiconductor stocks lower amid a sell-off on Wall Street on Tuesday, with shares continuing their slide in extended trading, down 2%.
    Sonnenfeldt is optimistic about the wider AI industry though. “The potential of AI seems to be one of — if not the — most investible themes in all of financial history,” said Sonnenfeldt.
    According to Tiger 21’s recent member allocation report, the bulk of its members’ allocation is in private equity, at 28%. Real estate takes up 26% of members’ portfolios in spite of high interest rates, while public equities make up 22% of their asset allocation. More

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    Op-ed: A ‘retirement disconnect’ has swept across multiple generations of Americans

    YOUR GUIDE TO NAVIGATING YOUR FINANCIAL FUTURE

    A “retirement disconnect” has taken root among Americans across all demographics, from Gen Z to boomers, writes SurveyMonkey CEO Eric Johnson.
    Most workers would like to spend their retirement traveling, pursuing hobbies, and spending time with family.
    But when asked by CNBC and SurveyMonkey for a new study what they realistically expect in retirement, expectations have been lowered.

    Charday Penn | E+ | Getty Images

    Vibecession, quiet quitting, and now … the retirement disconnect? It’s not entirely surprising that the current workforce’s disillusionment with the status quo extends to even how they think about life after work. The days of dedicating half a century to a single company and retiring comfortably with a gold watch are long gone. A new CNBC|SurveyMonkey study illuminates this “retirement disconnect” and suggests that the fundamental idea of retirement may be on the cusp of an evolution. 
    Today’s workers envision a starkly different retirement from that of their predecessors. They anticipate a considerably more challenging path to financial security. These sentiments resonate across generations —even Gen Z workers (the latest to join the workforce) believe the still-working Gen X and boomers will have an easier path to retirement, while Gen X and boomers say the same about older generations. 

    The rising cost of living, stagnant wages, and lackluster savings are giving workers a reason to be doubtful that the traditional idea of retirement will be achievable in their lifetimes. 

    Traditional retiree dreams, but lowered expectations
    Across all demographics, the top three ways workers would like to spend their retirement include traveling, pursuing hobbies, and spending time with family. Working for supplemental income and starting a business are the least popular options.
    And yet, when asked what they realistically expect to do in retirement, a persistent gap emerges. More than twice as many respondents believe they’ll need to work for supplemental income (31%) than ideally want to (14%). Workers also believe they’ll need to care for family members in retirement at a higher rate (31%) than ideally want to (24%). This is true for both men and women workers; 24% of both say they’d ideally spend retirement caring for family, and 28% of men and 33% of women realistically expect to do so. 
    This gap between idealism and reality may be less surprising when considering that four in ten workers are behind on planning for retirement, with nearly half (48%) citing both debt and not having enough income as the top two reasons. In fact, one in five (21%) current retirees report having no retirement savings. With workers expecting a harder road to financial security than their predecessors and current retirees, it’s understandable to adjust expectations accordingly. 
    Retirement planning shortfalls, working longer
    Strikingly, even though 40% of workers report being behind on retirement planning, 71% are confident they’ll meet their retirement goals. This may be because more than half of workers (53%) expect to work in retirement. Of that 53%, 27% state they expect to work because they’ll need the supplemental income.

    From Gen Z to boomers, workers across demographics are consistent about a few things: that their retirement will look different from their parents’ retirement (73%) and will be harder to achieve (82%), and that they are concerned they won’t be able to afford to fully stop working (69%). 
    This collective shift in perspective could pave the way for a reimagined retirement that appeals to all workers across generations. The concept of retirement may shift from leaving the workforce entirely to transitioning into different roles or reduced hours. Business leaders must adapt to this new reality, recognizing that the next wave of retirees may not conform to the conventional idea of retirement and that can create opportunities for businesses to harness the strength of a multi-generational workforce. 
    The retirement disconnect is a complex societal challenge without an easy solution. However, the data makes it clear: workers are actively grappling with the evolving concept of retirement and its implications for their circumstances. The traditional idea of retirement is fading, replaced by something more fluid and dynamic.
    —By Eric Johnson, CEO, SurveyMonkey
    REGISTER NOW Join the free, virtual CNBC’s Women and Wealth event on September 25 to hear from financial experts who will help fund your future-whether you are returning to the workforce, starting a new career, or just looking to improve your relationship with money. Register here. More

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    Wednesday’s big stock stories: What’s likely to move the market in the next trading session

    Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., August 30, 2024. 
    Brendan McDermid | Reuters

    Stocks @ Night is a daily newsletter delivered after hours, giving you a first look at tomorrow and last look at today. Sign up for free to receive it directly in your inbox.
    Here’s what CNBC TV’s producers were watching as the three major averages started September on a losing note, and what’s on the radar for the next session.

    Nvidia

    On Tuesday, Nvidia lost more market value than any other stock in a single day: $279 billion. That’s a big number. CNBC’s man at the NYSE Bob Pisani notes this is the fifth time the stock has lost more than $200 billion in market cap in a single day, but Tuesday’s action takes the cake.
    The stock lost 9.5%.
    It is now down 23.3% since June 20. It is up, however, 118% in 2024.
    The stock is down another 2% after hours. The action comes after Bloomberg reported that the Department of Justice is taking a closer look at antitrust concerns for Nvidia.

    Stock chart icon

    Nvidia’s performance in the past five days

    VanEck Semiconductor ETF

    Dividend stocks

    This part of the market held up OK on Tuesday. The SPDR S&P Dividend ETF (SDY) fell 0.4% on Tuesday, and hit a 52-week high early in the session.
    Some might call the dividend yield on this ETF low. It’s 2.4% as of Tuesday night.

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    SPDR S&P Dividend ETF (SDY) one-day performance

    Utilities

    The S&P Utilities Sector finished flat on Tuesday, but it hit a new 52-week high earlier in the day.
    The sector is paying a 3% dividend, as of Tuesday’s close.
    When interest rates go down, some investors look to utilities which generally pay a decent dividend.
    If you look at the utilities sector going back to March 2022 — as rates started to rise — it is up 7% since then.
    The Relative Strength Index of the sector is 71. Some traders might think this reading suggests the utilities sector is overbought, but it doesn’t necessarily mean that it’s guaranteed to fall.
    In the last month, NRG Energy is the sector’s top performer. It’s up 14% in that period.
    PG&E is up 8.3% in a month.
    Constellation Energy is up 6.4% in a month.
    At the bottom of the pile: American Water Works is off 2.6% in the past month, while AES is down 2.2%. Evergy is down nearly 0.8% in a month.

    Mortgage applications

    Stock chart icon

    Champion Homes in the past month

    Big Oil

    The S&P Energy sector was a bit of a downer Tuesday, losing 2.4%. It is now 9.4% from the April high.
    APA was the biggest drag, down 6% on Tuesday. 
    EOG Resources and Halliburton were down 4% in the session.
    Exxon Mobil dropped 2.1% during the day. Chevron fell 2.2% and ConocoPhillips fell 3.46%.
    CNBC’s Pippa Stevens will pick up coverage on Wednesday.
    Brent and WTI are both down 4% in a month.
    The S&P Energy sector is flat in that same time period.
    Oneok and Targa are up 15% in a month. Williams Companies is up 8% in that time.
    APA, Halliburton and SLB are the laggards: All three are down about 6% in a month.

    Ahead of the NFL

    CNBC’s Contessa Brewer will look at the gambling stocks on Wednesday as we close in on the first game of the football season.
    The Kansas City Chiefs play the Baltimore Ravens on Thursday at 7 p.m. ET on NBC and Peacock.
    DraftKings is down 22% since Feb. 12, the day after the Super Bowl. The stock is down 32% from the March high.
    Flutter is 3% in the same time period. The stock is 9% from the March high.
    MGM Resorts is down 22% since then. Caesars Entertainment is down 19% in that time period. MGM is 25% from the April high, and Caesars is down 35% from the September high.
    By the way, on Thursday’s “Squawk Box,” CNBC will release a much-awaited list of how much NFL teams are worth. Don’t miss it. It’s going to be big.

    Dollar Tree reports

    The report comes out before the bell Wednesday morning.
    Dollar General reported last week, and it wasn’t pretty.
    Dollar General shares tanked after the company issued its results last Thursday. The stock was up 1% Tuesday, but it’s still down about 33% in a week.
    Dollar Tree is 45% from the March high. Shares are down 14% in a week. More