Inflation is impacting Americans’ retirement plans
According to a recent report from the Nationwide Retirement Institute, Americans are kicking the retirement can further down the road. The study of more than 1,700 workers aged 45 or older found that about 40 percent were delaying retirement because of inflation.
The survey found that overall, workers’ attitudes toward retirement are faltering. About a quarter of workers said they felt like they were on “the wrong track” when it comes to retiring. Also, only about 50 percent of respondents said they had a positive outlook on their retirement savings strategy. Workers are also feeling overwhelmed, with 21 percent saying they were “confused” and 15 percent claiming they were “panicked” about their retirement plans.
As Money notes, the sour outlook is due to inflation. Almost everything is more expensive these days, and that has also changed how people are saving. A separate survey found that 36 percent of Americans have reduced their short-term savings and 21 percent are saving less for retirement.
The good news is that people are taking steps to adapt to the rising costs. Almost half of Americans said they’re dining out less, 43 percent said they have changed how they shop for groceries and 22 percent said they’ve cut back on subscription costs.
Even with prices skyrocketing, remember that retirement savings are vital. Do what you can to save as much as possible, and try not to panic about the short-term. Things might be tough now, but that doesn’t mean they’ll always be that way. Remember that saving for retirement is a marathon, not a sprint.
Content by Savvy Money