Red-hot inflation is crushing retirement savings plans, with many Americans increasingly worried that they’re falling behind on their goals, according to survey results released Monday.
A whopping 55% of Americans said they were behind on retirement savings, compared to 35% who said they were on track with or ahead of their goals, the survey conducted by Bankrate found.
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The share of savers who trailed their goals increased 3 points compared to last year, when 52% said they were behind.
When asked why they weren’t able to save more money, 54% of respondents blamed inflation for hurting their ability to build their nest eggs. Other popular answers included stagnant or reduced income (24%) and debt repayment (23%).
“Even though Americans know they need to save more, inflation is a major obstacle to doing so,” Greg McBride, chief financial analyst for Bankrate, said in an interview with Bloomberg.
“We know from the CPI and other inflation barometers that the lion’s share of inflation is coming from necessities like shelter, food and energy costs. This is not discretionary spending that is really straining household budgets.,” McBride added.
Inflation hit 8.2% in September.Christopher Sadowski
The Baby Boomer generation was most likely to report concern about retirement savings, with 71% admitting they were behind their targets. That’s compared to 65% of Gen-X respondents and 46% of Millennials.
The survey marked the latest sign of financial strain facing US households as they struggle to cover the costs of daily necessities such as food, gas and rent.
Overall, Inflation hit 8.2% in September, well above the Federal Reserve’s 2% target. The price of groceries surged by 13% compared to the previous year.
Daily needs such as gas are at their highest prices in decades.AFP via Getty Images
As The Post reported, inflation cost Americans an extra $445 for typical expenses last month.
A separate survey conducted by Morning Consult found 24% of US grocery shoppers reported cutting back on purchases due to higher prices. An alarming 72% of Americans said they were concerned about food inflation.
The feds have taken steps to help older Americans bear the financial burden.
Earlier this month, the Social Security Administration announced an 8.7% cost-of-living adjustment for recipients in 2023. The policy is expected to cost taxpayers about $100 billion.
Source link: https://nypost.com/2022/10/24/inflation-crushing-retirement-savings-plans-for-many-americans-survey/