A recent study by an Allianz Group research team reveals how the recent economic turmoil and plunge in household wealth is affecting consumer habits.
The research showed that the spike in savings rates, which recently hit 6 percent, could prove to be a permanent shift in Americans’ behavior.
Such a sea change in consumer habits could correlate to an increase in the need for guaranteed and safe-savings solutions, as Americans become more leery of risky investments.
Allianz estimates that $700 billion in U.S. savings could be amassed in the next 10 years. This would come as a reaction to the unprecedented drop in net worth from mid-2007 to early 2009. At its worst, the collapsing real estate and stock markets erased almost $17.5 trillion in household wealth.