Most of us are feeling the pain of inflation now, but the rising cost of almost everything may be impacting our future selves as well: People are cutting back on saving for retirement as a result of inflation. The majority of Americans say current financial issues are more pressing than preparing for the future. Two in three Americans (67%) say they are more concerned about paying bills right now than saving for their financial future, according to a new study from Allianz Life Insurance Co. of North America.
Inflation and reduced purchasing power is to blame. The vast majority (82%) of Americans say they are worried about rising inflation continuing to have a negative impact on the purchasing power of their income in the next six months, the study found. Read: How long does your retirement savings need to last? First, learn how long you might live. As a result, many retirement savers have hit pause. A majority of Americans (55%) say they have either stopped or reduced their retirement savings due to rising inflation. And 45% say they have had to dip into their retirement savings because of rising inflation. “Reducing retirement savings should be a last resort, short-term answer for inflation because it could have a significant detrimental effect on financial security for years to come,” said Kelly LaVigne, vice president of consumer insights of Allianz Life. Read: What do older workers want? Most see flexible hours and remote work as …