Have you ever wondered exactly how are retirees affected by inflation? This article will provide information on how inflation impacts retirement confidence.
How are Retirees Affected by Inflation? (Photo: Forbes)
How are Retirees Affected by Inflation? Understanding the Cost of Living and Reduced Confidence
According to Kiplinger, there are many reasons how are retirees affected by inflation. The persistent rise of inflation has unfortunately resulted in a noticeable decline in people’s overall confidence regarding their retirement prospects. Additionally, the standard of living for many individuals has been negatively affected due to the increased cost of goods and services.
Exactly how are retirees affected by inflation? The cost of living for retirees is most affected by inflation. For instance, 42% of the cost of living is due to reduced confidence, while 25% is due to a lack of savings.
Many people may wonder about the connection between these factors and how are retirees affected by inflation. To shed some light on this, it’s worth noting that 60% of retirees have experienced a decrease in their account balance from 2022 to present day. Moreover, two-thirds of retirees are concerned that the rising cost of living will make it more challenging for them to save money.
How are retirees affected by Inflation? “The Cost of Living: A Major Concern”
According to Coastal Wealth Management, the primary worry for this year’s inflation is the cost of living.
The report highlights how are retirees affected by inflation among workers and retirees, with many worried about the impact on their ability to save and spend. A significant percentage of retirees reported higher spending than expected, while workers expressed doubts about their ability to keep up with the increasing cost of living during retirement.
Thus, the cost of living is a major concern not only for the retirees but also for people who are still working.
