Trend: Lifestyle and Economic Changes May Last Beyond Current Recession

May 27, 2009 by anne

Shock dealt by the market is laying the foundation for deep, long-term change where quick or temporary adjustments won't do.

Rocked to their core, consumers are saying a good-bye to frivolous expenditures. In fact, Americans say that even after the recession ends, their spending will return to just 86% of pre-recession levels, which equates to an approximate 10% drop, according to a new survey by AlixPartners LLP.

Once the recession ends, Americans plan to save 14% of their total earnings, with the replenishment of their 401(k) and other retirement savings their biggest long-term concerns. In the end, this financial crisis may be recorded as a "generation-changing moment" where investors chose risk management over risky business.

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