High inflation is changing the way Americans retire
Bolvin Wealth Management Group President Gina Bolvin discusses the move in commodities, expected inflation data, the housing industry and her outlook for consumers.
A growing number of older Americans are delaying or abandoning their retirement plans as they continue to battle chronic inflation, according to a new survey published by Nationwide.
More than six in 10 investors said their expectations for retirement have changed «significantly» in the last five years, while about 50% said their dreams for retirement have been delayed, altered or canceled as a result of the economic conditions seen in the last five years.
Consumers are grappling with a number of financial headwinds, including steep interest rates and ongoing inflation that has made the cost of just about everything from rent to gasoline to groceries more expensive.
INFLATION IS UP 20% SINCE BIDEN TOOK OFFICE
More than six in 10 investors said their expectations for retirement have changed «significantly» in the last five years. (iStock / iStock)
While inflation has fallen considerably from a peak of 9.1% notched during June 2022, it remains well above the Federal Reserve's 2% goal. And when compared with January 2021, before the inflation crisis began, prices are up a stunning 20%.
As a result, just 38% of investors believe in having a retirement savings target, or a specific goal for retirement. About 42% of respondents said the «magic number» needed to retire comfortably is between $1 million and $2 million, while about 18% pegged the figure at more than $2 million.
«Americans believe they will need over $1 million to retire comfortably – a figure that could be discouraging for even the most committed retirement savers,» said Rona Guymon, senior vice
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