Inflation fears eating away at nearly 90 percent of retirees, says Schroders
Inflation is continuing to take a financial and mental toll on retirees, with nearly 70 percent concerned about outliving their savings, according to the Schroders 2024 US Retirement Survey.
The survey drew responses from 2,000 US investors aged 28 to 79, including 498 retirees, revealing that less than half of Americans in retirement believe they have saved enough.
Only 44 percent of retirees said they felt confident they had enough savings, while 32 percent were sure they hadn’t saved adequately, and 24 percent were unsure. The study further found that a staggering 89 percent were at least somewhat worried about inflation eroding their assets.
“Whether it’s a trip to the gas station, grocery store or pharmacy, prices in the US have increased noticeably in recent years, and that is particularly challenging for retirees living on fixed income sources,” Deb Boyden, head of US defined contribution at Schroders said in a statement.
“The challenges facing retirees today are further evidence of the retirement savings crisis,” she said
The survey also highlighted major financial concerns over healthcare costs and market downturns. More than three-quarters of retirees (76 percent) were worried about a significant market decline reducing their assets, while 85 percent feared escalating healthcare expenses. Nearly half (49 percent) believed Medicare would cover more of their healthcare costs than it currently does.
Based on the survey responses, healthcare-related expenses eat up an average of 14 percent of retired Americans’ monthly income. A modest 58 majority percent of retirees admitted to having no clear idea how long their savings would last, and 63 percent wished they had planned better before retiring.
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