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Federal Reserve officials are worried that inflation could last longer than they had anticipated, according to minutes from a recent meeting released this week.
Now, a survey from Global Atlantic Financial Group shows that retirement age investors ages 59 to 75 are concerned inflation could wreak havoc on their investments.
More than 7 out of 10 investors — 71% — said they believe rising inflation will negatively affect their retirement savings.
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Moreover, 46% of investors said they believe rising inflation and low interest rates will make it more difficult to have steady income in retirement. Of those invested in fixed income, 46% said 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 it might be a good time to revisit their retirement strategies,” said Paula Nelson, co-head of individual markets at Global Atlantic, in a statement.
The survey was conducted in August and included 1,013 retirement age investors with more than $250,000 in investable assets.
New government data released this week showed rising consumer prices, a sign of persistent inflation. The Consumer Price Index, which measures changes in consumer prices, had a year-over-year gain of 5.4%, the highest it has been in since January 1991.
The survey found that also high among retirement age investors’ concerns is the negative impact Covid-19 could have on their money.
The results showed 73% are worried about how a resurgence of the virus would affect the stock market. Meanwhile, 56% are concerned about how that could negatively impact their retirement savings.
The study also found that retirement age investors are now more willing to consult financial professionals for help.
While 64% said they are more open to financial advice than they were before the pandemic, 51% who work with financial professionals said they have discussed the low interest rate environment with them.