Eighty-one percent of Americans are worried about the effects that inflation and the recession will have on their spending power during retirement, according to the Protected Retirement Income and Planning Study from the Alliance for Lifetime Income and CANNEX, released Monday. According to the study, six out of 10 consumers aged 45 to 75 years have reduced their spending now in reaction to inflation.
An equal number of financial professionals are worried, too. Driven largely by inflation, 78% of financial professionals have changed their approach to retirement planning in the past year, according to the study. Eighty-two percent of financial professionals who have made changes cited inflation as a major factor in their decision-making. About half cited other top factors, including bond returns (52%) and interest rates (48%).
“Our data shows that clients are searching for an alternative to traditional asset allocation strategies, and we’re encouraged to see advisors responding to that demand,” Gary Baker, president of CANNEX USA, stated in a press release.
The previous year’s study showed that 65% of the financial planners queried were changing their approach to retirement planning.
“Against the backdrop of record inflation, a bear market and global economic uncertainty, the misalignment in what financial professionals are relying on to create retirement income and what clients are looking for, is a problem,” Jean Statler, CEO of the Alliance for Lifetime Income, said in the press release. “Ninety-two percent of financial professionals are worried about inflation reducing client spending power, and so it’s good that many of them have changed their retirement planning approach this past year.”
