Inflation Is Weighing Heavily on Retirees

Retired Americans are concerned about how much inflation will affect their ability to save for the future.

More than 90% of retired Americans surveyed for investment manager Schroders said they are worried that inflation is lessening the value of their assets. Greater than 80% said they wish they could better protect their savings from the effects of inflation.

Other top concerns plaguing retired Americans this year include outliving assets and facing higher-than-expected health-care costs. The report—based on interviews from late March to mid-April and released earlier this month—showed that retirees said they are spending an average 15% of their total monthly income on insurance premiums, prescription costs, out-of-pocket expenses, and other health-related costs.

“Rising prices on essentials like housing, food, and health care have significantly diminished the purchasing power and financial security of retirees,” said Schroders’ Head of U.S. Defined Contribution, Deb Boyden, in a prepared statement about the report.

Uncertainty About Finances ‘Plaguing So Many Retirees’

“The uncertainty that’s currently plaguing so many retirees is a poignant reminder of the value of proper planning, products and personalized advice for a comfortable retirement,” Boyden said.

One in four retirees surveyed said they have lost sleep worrying about their financial situation and more than a third said they are concerned their financial stress will have an impact on their overall health, according to the report.

However, nearly half of American retirees in the study said they don’t have a plan in place to estimate their expenses, determine how much income is needed, or develop an investment strategy to achieve their goals.