Home Fixed interest 71% of retirement age investors fear inflation will hurt their savings

71% of retirement age investors fear inflation will hurt their savings

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Federal Reserve officials fear inflation may last longer than expected, according to the minutes of a recent meeting released this week.

Now, a survey by Global Atlantic Financial Group shows that retirement-age investors, aged 59 to 75, fear inflation could wreak havoc on their investments.

More than 7 in 10 investors – 71% – said they believed rising inflation would negatively affect their retirement savings.

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Additionally, 46% of investors said they believe rising inflation and low interest rates will make it more difficult to have a stable income in retirement. Of those who invest in fixed income securities, 46% say they are concerned about low interest rates affecting their retirement income.

“Those on the cusp of retirement are paying close attention to economic issues such as inflation and low interest rates, and they recognize that the time may be right to revisit their retirement strategies,” said Paula Nelson, co-head of retail markets at Global Atlantic, in a statement.

The survey was conducted in August and included 1,013 investors of retirement age with more than $ 250,000 in investable assets.

New government data released this week showed higher consumer prices, a sign of persistent inflation. The Consumer Price Index, which measures changes in consumer prices, recorded a year-over-year gain of 5.4%, the highest since January 1991.

The survey found that the negative impact Covid-19 could have on their money is also among the concerns of investors at retirement age.

The results showed that 73% are worried about how a resurgence of the virus would affect the stock market. Meanwhile, 56% are worried about the negative impact this could have on their retirement savings.

The study also found that investors in retirement age are now more willing to go to financial professionals for help.

While 64% said they were more open to financial advice than they were before the pandemic, 51% who work with finance professionals said they discussed the rate environment with them. low interest.


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