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Data & Research May 19, 2008
Retirees Worry About Inflation
A new study from the Society of Actuaries (SOA) finds inflation is the top retirement concern for retirees as well as Baby Boomers nearing retirement.
Reported by Rebecca Moore
A press release said the Risks and Process of Retirement Survey Report indicated pre-retirees and retirees are worrying about keeping the value of their assets up with inflation as well as having enough money to pay for long-term care, paying for adequate health care, and maintaining a reasonable standard of living after the loss of a spouse.
As a result of increased longevity, pre-retirees and retirees are concerned that inflation will significantly contribute to the depletion of their retirement savings and assets. To manage this risk, the report suggests investment strategies to preserve principal, such as investing in annuities.
The study found women are more concerned than men that inflation will significantly impact their retirement resources. Women also expressed higher levels of concern regarding: inflation (62% of women versus 51% of men); affording long-term care (57% versus 47%); health care costs (56% versus 45%); depleting savings (52% versus 37%); and staying in their home (44% versus 29%).
The full report can be viewed here.