One of the things Americans need to think about as they begin their working life, without a doubt, is retirement. In an ideal scenario, this process should be started from an early age, the reality is that there are factors that make this impossible.
Perhaps one of the reasons why many citizens do not save enough is inflation, due to the fact that it unbalances daily expenses in every way, as revealed by a survey by the insurance firm Allianz Life. The exercise carried out by the company indicated that more than half of Americans, 54%, recognized that they cut their retirement savings.
The survey consulted 1,25 people, who revealed that it is extremely difficult to save in a context where inflation is the highest in 40 years. The research found that the younger generations of working age are the ones who have saved the least for retirement.
Allianz Life indicated that millennials, 65%, were more likely to say they stopped saving or reduced their retirement contributions due to inflation, compared to the 40% of baby boomers and the 59 % of Generation X.
On the other hand, the study found that 80% of those surveyed acknowledged being concerned about rising inflation and its impact on their purchasing power in the coming months, in this sense 75% reported that they are concerned that it could harm their retirement plans.
Saving for retirement shouldn’t be a minor issue for Americans, as in one study, financial services firm Northwestern Mutual said that in the ideal scenario, people should save at least $1.25 millions of dollars to have a hassle-free retirement.
The worrying thing, Northwestern Mutual noted, is that most people are nowhere near that amount. In addition, the firm indicated that the US savings rate skyrocketed, in part, due to stimulus checks, but that amount of money was not earmarked for retirement.
According to the company, this money was used for recreation, trips, visits to restaurants and common expenses such as paying bills and some debts. In this sense, Americans lost an opportunity for that money to be used for retirement.
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