Two in three Americans (67 percent) say they are more concerned about paying bills right now than saving for their financial future, according to the 2022 Q4 Quarterly Market Perceptions Study from Allianz Life Insurance Company of North America.
Inflation risks reducing purchasing power is driving those present concerns. The vast majority (82 percent) 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.
Many are turning to their retirement accounts to help account for these short-term needs. The majority of Americans (55 percent) say they have either stopped or reduced their retirement savings due to rising inflation. And 45 percent say they have had to dip into their retirement savings because of rising inflation.
Three in four millennials (75 percent) say they are more concerned about paying bills now than about saving for their financial future, compared to 73 percent of Gen Xers and 56 percent of Baby Boomers. At the same time, 66 percent of millennials say they have either stopped or reduced their retirement savings due to rising inflation, compared to 55 percent of Gen Xers and 47 percent of boomers. Read the full report.