Ipggutenbergukltd | Istock | Getty Images
Despite the pandemic, most Americans still feel optimistic about a cushty retirement, but inflation is the highest concern amongst those that aren’t as prepared.
That is based on the Worker Profit Research Institute and Greenwald Research thirty second annual Retirement Confidence Survey polling 2,677 employees and retirees in January.
“Even with the concerns of the pandemic and rising prices, overall, American employees and retirees still feel positive about their retirements,” said Craig Copeland, director of wealth advantages research at EBRI.
More from Personal Finance:
Most adults’ financial priority is nonretirement savings, survey shows
Here’s an easy solution to see how inflation erodes your long-term savings
High inflation may prompt people to alter their summer vacation plans
The 2022 findings remain regular in comparison with 2021, with greater than 7 in 10 employees reporting they’re at the least “somewhat confident” about retirement savings, including nearly one-third who feel “very confident.”
Some 8 in 10 retirees consider they’ll manage to pay for to live comfortably through their golden years, based on the survey. However the pandemic dimmed optimism for one-third of employees and one-quarter of retirees.
“The Americans who usually tend to feel that their futures appear grim because the pandemic are those that were already pessimistic about their futures, as a result of lower incomes, problems with debt or lower health status,” said Copeland.
A robust majority of retirees still feel their retirement lifestyle and spending are on the right track.
Lisa Greenwald
CEO of Greenwald Research
Unsurprisingly, inflation and rising expenses are the highest concern amongst employees and retirees feeling less confident about retirement.
When asked an open query in regards to the specific reason for waning retirement confidence, one-half cited inflation and the rising cost of living, said Lisa Greenwald, CEO of Greenwald Research.
Annual inflation has crept higher because the survey in January, rising to eight.5% in March, based on the U.S. Department of Labor, affecting the value of on a regular basis expenses like groceries, gasoline and housing.
Nonetheless, spending changes in retirement may lessen the sting of some rising costs, J.P. Morgan’s 2022 Guide to Retirement found. Excluding health care, retirees may spend less on other costs, equivalent to food and fuel.
While the Retirement Confidence Survey showed most retirees’ spending was as planned, 1 in 3 said they shelled out greater than expected, up from one-fourth in 2021, the survey revealed.
“This might reflect increased use and desire for travel and leisure because the pandemic lulls,” said Greenwald. “It might probably also reflect inflation and the increased cost of travel and entertainment for some.
“While it is tough to know which reason is driving the upper expenses, a powerful majority of retirees still feel their retirement lifestyle and spending are on the right track,” she added.
