U.S. tourism industry faces $12.5 billion loss in international travel spending, impacting retirement savings

From Yahoo Finance: 2025-05-24 07:01:00

The U.S. tourism industry faces a $12.5 billion loss in international travel spending in 2025, impacting millions of jobs and tax revenues. The tourism slump can affect retirement savings due to the sector’s economic impact. States with high numbers of seniors, like Florida and Texas, could be particularly vulnerable.

Yehuda Tropper of Beca Life Settlements warns that regional economic downturns can impact retirement savings, as seen in the Great Recession. Consumers prioritize essential bills over discretionary spending during economic weakness, affecting mutual funds and ETFs. Investors should consider rebalancing portfolios towards more stable sectors.

Oppenheimer Asset Management advises against reacting to short-term market fluctuations, as selling during turbulence can derail long-term goals. Dollar-cost averaging during a downturn can be a buying opportunity for those still accumulating retirement savings. Maintaining an emergency fund and avoiding tapping into retirement accounts during a dip is crucial for retirees.

Personal finance expert Suze Orman suggests maintaining a “just-in-case” fund of three to five years’ worth of expenses in a liquid account to avoid liquidating investments at a loss during market downturns. Reviewing investments, staying disciplined, and making small adjustments can help keep long-term financial goals on track despite the tourism slump’s impact on retirement savings.



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