71% of retirement age traders fear inflation will harm their financial savings
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Federal Reserve officials fear inflation may last longer than they expected, according to the minutes of a recent meeting released this week.
Now, a survey by the Global Atlantic Financial Group shows that retired investors between the ages of 59 and 75 fear that inflation could wreak havoc on their investments.
More than 7 in 10 investors – 71% – said they believe rising inflation will have a negative impact on their retirement savings.
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In addition, 46% of investors said they believe rising inflation and low interest rates will make it harder to have stable income in retirement. Of those who have invested in fixed income securities, 46% said they were concerned about the low interest rates that are 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 realizing that it may be a good time to rethink their retirement strategies,” said Paula Nelson, co-head of individual markets for Global Atlantic, in a statement.
The survey was conducted in August and included 1,013 retired 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, rose 5.4% year-on-year, its highest level since January 1991.
The survey found that retired investors also have a high negative impact of Covid-19 on their money.
The results showed that 73% are concerned about how a virus resurgence would affect the stock market. 56% worry how this could negatively affect their retirement savings.
The study also found that retired investors are now more willing to turn 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 financial professionals said they spoke to them about the low interest rate environment.