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High inflation is changing the way Americans retire

More and more older Americans are delaying or abandoning their lives. Retirement allowance system They continue to struggle with chronic inflation, according to a new study published by Nationwide.

More than 6 in 10 investors say their retirement expectations have changed “significantly” over the past five years, and nearly 50% have delayed or changed their retirement dreams due to economic conditions over the past five years. They answered that the event had been canceled or cancelled. Year.

Consumers face a variety of economic headwinds, including rising interest rates and inflation, which is driving up the prices of everything from rent to gasoline to groceries.

Inflation has increased by 20% since President Biden took office.

More than six in 10 investors said their retirement expectations have changed “significantly” over the past five years. (license/image)

Inflation has fallen significantly from a peak of 9.1% recorded in June 2022, but remains Fed’s 2% target. And compared to January 2021, before the inflation crisis began, prices have increased by a whopping 20%.

As a result, only 38% of investors believe they have a retirement savings goal or a specific goal for retirement. About 42% of respondents said the “magic number” needed to retire well was between $1 million and $2 million, while about 18% expected that number to be $2 million or more.

“Americans believe they need more than $1 million to retire comfortably, but this figure can be discouraging for even the most dedicated retirement savers,” said Rona Guymon, senior vice president for national pension distribution.

Inflation rate rose 3.4% in April as prices continued to rise

us inflation

Customers shop at a supermarket on August 10, 2022 in Millbrae, California. ((Photo Credit: Li Jianguo/Xinhua News Agency, via Getty Images)/Getty Images)

Economic uncertainty has many Americans reconsidering whether retirement is a realistic goal. More than a quarter of all non-retired investors say that if they were to retire in the next 12 months, they would likely be forced to return to work at some point due to insufficient savings. , 19% have doubts about saving enough money for retirement.

Another 19% said their retirement will be delayed due to inflation.

High inflation is putting severe economic pressure on most American households, forcing them to pay for everyday necessities like food and rent. Grocery prices have increased more than 21% since the beginning of 2021, and shelter costs have increased by 18.37%, according to FOX Business calculations. Meanwhile, energy prices have increased by 38.4%.

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Rising prices are especially devastating for low-income Americans. This is because they tend to spend more of their already stretched salaries on necessities, and therefore have less flexibility in their lives. save money.

The typical U.S. household had to pay $227 more per month in March to buy the same goods and services as a year ago, as inflation remains high. Americans are paying, on average, $784 more each month than they did during the same period two years ago, and $1,069 more than they did three years ago.

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