Two recent surveys have both found that retirees are worried about either saving for retirement or their finances while retired. Voya Financial’s consumer research survey found that higher inflation has many worried that the value of the dollars in their 401(k)s and similar retirement plans won’t go as far as they might have hoped. It found that 66% of respondents are worried about how inflation will impact their ability to save for retirement, while 44% say they’ve already tapped into their retirement savings. A study conducted by Age Wave, in partnership with Edward Jones, found that 41% of retirees surveyed say they often worry about draining their money. While many participants hope to stop working, 59% see their retirement including some sort of work.

 

WSJ/Business Hala
Inflation and Stock-Market Volatility Prompts Most Retirees to Alter Finances, Study Finds

According to a study of 11,000 individuals in North America, including 5,000 retirees, conducted by my firm, Age Wave, in partnership with Edward Jones, the majority (63%) of retirees say they now need to make some financial course correction. Harris Poll. Only 37% of retirees state their finances are completely on track.

The pandemic has wreaked havoc on our physical, psychological and financial well-being. But with the help of government safety nets like Medicare and Social Security, retirees, overall, have been more financially resilient than younger Americans — until recently.

This is because inflation is now eating away at the purchasing power of the limited pool of money in which retirees live. In fact, 41% of retirees surveyed say they often worry about draining their money. And current stock-market volatility is affecting the balances of their 401(k)s, individual retirement accounts and other retirement plans.

You can read the full story, here.

 

Fox Business/Talia Kaplan
Inflation: Former Philly Fed president reveals the ‘big mistake’ that led to the current crisis

Former President and CEO of the Federal Reserve Bank of Philadelphia Charles Plosser revealed on Thursday who he believes is responsible for the inflation “crisis” as price hikes sit near 40-year highs.

Speaking on “Cavuto: Coast to Coast,” Thursday, Plosser argued that “one of the big mistakes right now is that people blame inflation on the pandemic, supply chain bottlenecks, “greedy corporations” and the war in Ukraine, believing “the policy would have been fine if it hadn’t been for all that.”

“Monetary and fiscal policy have been extraordinarily aggressive in this episode and they’re the ones to look to as to what went wrong during this and to why the inflation has persisted as it seems to be,” he said.

You can read the full story, here.

 

Kitco News/Neils Christensen
Gold remains an important stabilizing asset as stagflation threat grows – Axel Merk

The Federal Reserve has reaffirmed its commitment to stabilizing consumer prices as inflation erodes personal wealth and threatens the economy.

However, In a recent interview with Kitco News, Axel Merk, President and Chief Investment Officer of Merk Investments, said that the economic outlook could get a lot messier as the U.S. central bank faces a difficult battle in its fight against inflation.

Continue reading, here.

 

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