Finance
Inflation is why many Americans plan to delay retirement: survey
Rejoining the workforce after retirement is not always driven by finances, a recent study said. (iStock)
Inflation is moderating, but an increasing number of Americans that are nearing retirement or have already retired are considering delaying their plans or returning to the workforce because of rising prices, a recent survey said.
More than two out of three (68%) of pre-retirees plan to push back their retirement – compared to 64% last year, according to the F&G Annuities & Life survey. Forty-four percent said inflation was the reason why they were altering their plans. Inflation moderated to 3% in June after reaching a 40-year high two years before. However, the lingering effects of high prices have remained, and the Federal Reserve’s quest to lower inflation by raising interest rates has also increased borrowing rates on everything from car loans to home loans.
Respondents also cited other reasons for returning to the workforce, saying it also also offered them an intellectual challenge. A third of people (33%) who are either considering or have pushed back their retirement said they were doing it because they loved what they did for work. The same percentage said they enjoyed the stimulation of working.
“This remains a challenging macroeconomic environment to navigate for those close to or in retirement,” F&G CEO Chris Blunt said. “As our survey shows, Americans are still reconsidering what retirement means to them, which may look different from previous generations. We believe taking a proactive approach in financial planning can help mitigate some of the economic risks, allowing people to focus on their own personalized roadmap of how and when to retire.”
If you’re struggling to save for retirement in the current economy, you could consider paying down high-interest debt with a personal loan at a lower interest rate, which can help you lower your monthly payments. Visit Credible to compare options from multiple lenders at once and choose the one that’s the best for you.
MOST HOMEOWNERS WOULD RATHER REMODEL THEIR HOME THAN BUY ANOTHER HOME: STUDY
Gen X most impacted by high prices
Generation X is the most concerned over the impact of inflation on their retirement plans, with 71% saying they are considering or have pushed back their planned retirement date, up from 65% last year, according to the survey.
Beyond inflation, 49% of Generation Xers said they were worried they hadn’t saved enough money to retire and 42% said they wanted more financial options and a larger safety net.
“As Gen Xers near retirement, our study shows that their worries are heightened,” F&G President John Currier said. “Having the right advice and financial tools can help alleviate these concerns, including engaging with a financial professional and considering products like fixed indexed annuities (FIAs) and registered index-linked annuities (RILAs) that can provide a mix of upside potential and downside protection.”
If you are preparing for your retirement, you could consider using a personal loan to help you pay off debt at a lower interest rate, saving you money each month. You can visit Credible to find your personalized interest rate without affecting your credit score.
AMERICANS TYPICALLY SPEND ABOUT 24% OF THEIR INCOME ON MORTGAGE PAYMENTS
Workers estimated they need $1.5 million to retire
Workers said they needed to save $1.5 million to retire comfortably, yet many are far from that target, according to a Northwestern Mutual survey. A third of workers said they had less than $50,000 in savings and investments, and 14% had less than $1,000.
Among the generations closest to retirement, only half of Boomers (49%) and Gen Xers (48%) believe they will be financially prepared to retire comfortably, with many expecting that they will likely outlive their savings. Even more problematic is that while many older Americans across both generations anticipate a retirement shortfall, more than a third (37% and 38%, respectively) have not addressed it.
“People’s ‘magic number’ to retire comfortably has exploded to an all-time high, and the gap between their goals and progress has never been wider,” Aditi Javeri Gokhale, Northwestern Mutual chief strategy officer, head of institutional investments and president of retail investments, said in a statement. “Inflation is expanding our expectations for retirement savings, and putting the pressure on to plan and stay disciplined.”
If high-interest debt is preventing you from saving more for retirement, you could consider paying it off with a personal loan at a lower interest rate. Visit Credible to find your personalized rate in minutes without affecting your credit score.
71% OF AMERICANS WAITING ON INTEREST RATE CUTS BEFORE HUNTING FOR HOMES: SURVEY
Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.
In this photo illustration, the Robinhood Markets, Inc. logo is displayed on a smartphone screen.
Rafael Henrique | Sopa Images | Lightrocket | Getty Images
Retail brokerage firm Robinhood is launching a new tool for more sophisticated traders as it looks for additional avenues for growth.
On Wednesday, the firm introduced Robinhood Legend, a desktop-based platform for active traders. The offering includes advanced charting tools for users who want to do detailed analysis of stocks.
“In looking at the landscape of trading tools and by talking with active traders, we realized there is frustration with legacy offerings,” Steve Quirk, chief brokerage officer at Robinhood, said in a press release.
“Specifically, moving back and forth between apps or charting platforms can be cumbersome and time consuming. So we set out to reimagine what a modern, intuitively designed active trading platform should look like, and built Robinhood Legend from the ground up so traders can do what they need in one place,” Quirk said.
Beyond the launch of Legend, Robinhood also said it will soon add futures trading and index options to its mobile platform. Customers must be granted approval to trade futures contracts, according to the press release, and futures and index options will eventually be added to Legend as well.
The new additions for Robinhood are another example of the firm looking to expand beyond its roots as a convenient platform for small-dollar traders. The firm’s rise coincided with the “meme stock” phenomenon in early 2021 as retail trading boomed in the aftermath of the Covid-19 pandemic.
Robinhood shares, all-time
Since then, Robinhood has been steadily adding new offerings, including a credit card for Robinhood Gold subscribers and a digital wallet to hold cryptocurrencies.
Robinhood said that it had $139.7 billion in assets under custody at the end of the second quarter, along with 11.8 million monthly active users. For the comparable quarter in 2021, near the height of the GameStop mania, Robinhood reported $102 billion in assets but 21.3 million monthly active users. The firm’s next earnings report is scheduled for Oct. 30.
Shares of Robinhood are up more than 100% so far this year.
The announcements on Thursday were part of HOOD Summit, a conference for Robinhood’s customers.
Trump and Harris would add trillions to the national debt. Here’s why it could lead to higher costs for households.
Voters won’t thank Kamala Harris for the state of the economy
Acumatica launches version supporting professional services like engineers and consultants
Are American progressives making themselves sad?
U.S. Beneficial Ownership Information Registry Now Accepting Reports
CPA licensure program off to ‘promising’ start
-
Personal Finance6 days agoInvestors face delays moving certain assets from TreasuryDirect
-
Stock News7 days agoBeleaguered Stellantis ousts CFO, other top execs in bid to ‘redouble’ its focus
-
Economics1 week agoInflation rate at 2.4%, topping expectations
-
Economics7 days agoHurricane Milton inundates Florida
-
Economics6 days agoProducer price index September 2024:
-
Finance6 days agoWells Fargo WFC Q3 2024 earnings
-
Economics1 week agoThe Democrats will struggle to retain the Senate
-
Finance6 days agoSeniors to get moderate cost of living bump in Social Security payments next year