It said that of those who have cut back on spending, inflation was cited as a reason by nine out of 10. Image: Prostock-studio/Shutterstock.com
By: FEDweek StaffRetirees’ satisfaction with their retirement is falling, pulled down by concerns about loss inflation and other factors, a survey by the Employee Benefit Research Institute has found.
On a scale of 1 to 10, the average satisfaction rating among the 2,000 retirees surveyed during the summer was 7.0, compared with 7.4 in 2020. “Similarly, retirees rated their alignment of life in retirement with expectations with an average 6.4 in 2022, down from an average of 6.8 in 2020,” it said.
“More retirees say that spending has increased and is higher than they can afford. Inflation appears to be a major driver of the misalignment between expectations and reality, a double-edged sword that undoubtedly increases actual spending but also reduces spending, likely out of a desire to protect future purchasing power,” it said.
It said that of those who have cut back on spending, inflation was cited as a reason by nine out of 10. Meanwhile, 27 percent said they are spending more than they can afford, up from 17 percent in 2020.
“Having a spending plan before transitioning to retirement is important in retirement wellbeing. This study underscores how expanding availability of professional financial help and improving awareness of protected income options contribute to comprehensive spending plans for retirement and can improve retirement security,” it said.
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