As inflation continues to soar, many workers are being forced to delay their retirement plans, according to NBC News. The quarterly BMO Real Financial Progress Index found that 25% of workers said they will have to keep working as high inflation has put a dent in their retirement savings.
The survey, which was conducted between March 30 and April 25, noted that 36% of Americans have reduced their savings, while 21% reduced the amount of money they were putting away for retirement due to rising costs. Younger workers between the ages of 18-34 were most likely to cut back on their retirement savings, with 60% saying they have reduced their contributions over the past few months.
Overall, 80% of Americans have been forced to make changes to their spending habits due to the rising costs. Forty-six percent of respondents said they have cut back on dining out and spend less when they do go out to eat. In addition, 42% said they are trying to cut costs at the grocery store, while 23% said the record-high gas prices are causing them to drive less.
“Prices across the board – from cars and gasoline to groceries and other everyday essentials – are rising at the fastest pace since the 1980s. Consumers must think differently about their finances in this inflationary environment,” said Paul Dilda, head of consumer strategy for BMO Harris Bank. “Seek advice from a financial expert on ways to successfully manage your personal finances, from learning ways to save and which types of accounts to use, to moving from knowing what you should do with your money, to actually doing it. By learning about what do to differently, and what not to change, during a period of inflation, consumers can maintain momentum toward their financial goals.”