Due to inflation, a majority (84 per cent) of U.S. employees believe their money doesn’t go as far as it used to, leaving many to wonder how to prioritize saving for retirement, according to a survey by Voya Financial Inc.
The survey, which polled 1,000 adults aged 18 and up, found three-quarters of millennials (73 per cent) and gen-Xers (74 per cent), as well as more than half of baby boomers (55 per cent) and gen-Zers (62 per cent) agreed or strongly agreed they’re worried about the impact of inflation on their ability to save enough for retirement.
“The results of our latest consumer survey are an important reminder for employers that all generations, particularly those balancing the impact of competing financial priorities today, are feeling the impact inflation has on their ability to save for the future,” said Heather Lavallee, chief executive officer of wealth solutions at Voya, in a press release.
“The past two years have also made it increasingly clear that many Americans will be faced with these competing priorities more than ever before. This could include challenges to building emergency savings, how to manage higher health-care costs or general concerns about what actions to take and not to take when it comes to overall plans for one’s financial future. As a result, it’s important to remind individuals where many can seek support for addressing these challenges — their employer.”
About two-fifths (43 per cent) of survey respondents said they’ve had to tap into finances they previously had set aside for retirement — and the number was even higher among millennials (57 per cent.) Notably, 57 per cent of millennials, who now make up roughly a third of the U.S. labour force, agreed or strongly agreed that because of inflation, they’ll need to delay their planned retirement date.
More than two-thirds (68 per cent) agreed or strongly agreed that, because of inflation, they’re not able to pay down debt as quickly as they want to — and even more (77 per cent) agreed or strongly agreed inflation has made them more aware of the need to save more for emergencies or unexpected events.