Fully 32 percent of Americans said they were ‘panicked’ or ‘very worried’ about inflation overall
Is ignorance fueling participants’ retirement paranoia?
Americans rank inflation as their main economic worry, yet wildly overestimate the rate of inflation itself, according to a new survey from Allianz Life.
Respondents predicted an average increase of 4.4 percent per year, with a third believing the cost of living would increase between 5 percent and 10 percent per year.
Yet the average inflation rate in the United States for the last 20 years was far lower at only 2.15 percent.
Fully 32 percent said they were either “panicked” or “very worried” about inflation overall.
Despite it being a top concern, the study also found that 64 percent of Americans do not have a financial plan that addresses the rising cost of living in retirement.
Of those who do, 51 percent claimed their financial plan to address it was to be more frugal with money when they retire.
“Although it may be an option for managing expenses, frugality is not a financial strategy that will mindfully and effectively address the rising cost of living throughout retirement, especially one that could last 30 years or more,” Allianz Life Vice President of Consumer Insights Deb Repya said in a statement. “There are many factors to consider when planning a long, comfortable retirement and addressing inflation is a critical piece of that puzzle.”
Read the full “What Ranks as the Top Retirement Worry for Participants?” article »