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What you need to know
- According to a recent survey, nearly eight out of ten pre-retirees as well as the majority of retired people are worried that their retirement savings do not keep up with inflation.
- Retirement in 2024 will be less financially secure for retirees. “better off than expected” In 2021, the upcoming year is 2020.
- Some pre- and current retirees also have caregiving responsibilities and many say they are unprepared to handle a family member's health emergency.
Inflation continues to weigh on the minds—and wallets—of both retirees and those who are still years away from retirement.
According to a recent survey, nearly 8/10 pre-retirees as well as a majority of retired people are concerned that their retirement savings and investments have not kept up with inflation. In the survey, respondents were aged between 45 and 80.
Retirement is less common among retirees “better off than expected” In 2021, the financial situation was better than it is in 2024. While inflation may have slowed from the levels of the summer 2022 but prices for everything from food to rent remain high and erode people’s purchasing powers.
"Even though inflation rates have come down, many are still affected by high prices for housing and groceries," said Anna Rappaport, chair of the SOA Committee on Post-Retirement Needs and Risks.
Nearly a quarter of retirees, and more than half of all pre-retirees, say rising prices have affected their everyday expenses. Higher prices have caused some pre-retirees —especially those with annual incomes of less than $100,000—to adjust their savings strategies.
Americans also struggle with caring responsibilities while they are dealing with financial worries.
One in ten pre-retirees provide or have provided care to family members that aren’t their children. If they were asked to provide financial assistance to a loved one, 27% and 38% of current and pre-retirees respectively feel unprepared.
“The costs and caregiving obligations connected to a medical emergency or health issue can be very high," said Rappaport.
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