54 percent of adults say they have stopped or reduced their retirement savings contributions due to inflation.
It's no secret that higher prices are taking a bite out of household budgets. They also appear to have made some people change their retirement savings habits. Inflation has caused 54 percent of adults to either reduce or stop their contributions, according to a new report from Allianz Life. Additionally, 43 percent say they have dipped into a retirement account due to inflation pushing up the cost of living.
The report, which also explores consumers' views of the economy, is based on an online survey conducted by Allianz in September among a nationally representative sample of 1,004 U.S. adults.
Inflation continues to run hotter than the Federal Reserve's target pace of 2 percent over the long run. As measured by the consumer price index, which tracks price changes among a variety of consumer goods and services, inflation was running at an annual 8.2 percent pace in September. On a monthly basis, the index was up 0.4 percent.
Estate Plan Review
This is why a review of your estate plan could be in order. How has inflation affected your assets and income? It's a good idea to review your investments as well. Is creating a proper trust, or reviewing a current Trust, needed to protect your assets and avoid taxes?
A proper estate plan can act as a hedge against inflation. If you have questions about protecting your retirement savings, please contact us. We are here to help.
Sincerely,
Yahne
Yahne Miorini, LL.M
