Inflation has reached a level Americans have not experienced in decades. The rising cost of goods can chip away at retirement funds, and most people expect inflation to increase.
The vast majority of people – 78% – expect inflation to get worse over the next 12 months, according to the new 2022 Retirement Risk Readiness Study from Allianz Life.
The big problem: Incomes are not rising at the same rate as inflation. Nearly 60% of people still in the workforce said their income is not keeping up with the rising cost of living. Forty percent of retirees said the same.
People who have yet to retire are particularly worried about how inflation will affect their ability to pay for necessities, save as much for retirement as they should, and attain the retirement lifestyle they envisioned.
They also may need to change course in order make ends meet. Around half of working people in the survey said they expect to find a job that pays more, reduce spending on necessities, or dip into their savings because of the increasing cost of living.