Americans Remain More Wary of Inflation Than Retirement Shortfall

Among American investors, 85% are worried about inflation impacting their financial future, while 68% say they are somewhat or very worried about their retirement income, according to a survey released Tuesday by F&G Annuities & Life Inc., a life insurance provider.

Fears about inflation are up from 79% in 2022, F&G found, even though the Consumer Price Index, the federal government’s inflation measure, fell to 3.3% in October from 7.7% one year earlier.

Meanwhile, concern about retirement income stayed steady year-over-year, up slightly from 67% last year and still much higher than 2021 (47%) and 2020 (51%), F&G noted.

“American investors are increasingly more distressed about their financial futures than they were at the height of the pandemic, and many are still not taking action to address their concerns,” Chris Blunt, president and CEO of F&G, said in a statement. “Even with these worries, financial advisers continue to be underutilized. Regardless of what is happening in the world, financial advisers are a much-needed resource and key relationship to achieve ongoing financial wellness, sound retirement planning and a tailored mix of products to suit unique needs and goals.”

A separate survey from Forex.com released a week ago found a more negative view of retirement saving: More than half (56%) of Americans have not started saving for their retirement, despite more than one-third (33%) believing they will need between $100,000 and $500,000 to retire comfortably. Additionally, 69% of Americans are not at all satisfied with their current retirement savings pot, and only 5% feel satisfied, according to the Forex.com survey.

The F&G survey indicated that, given increased inflation, 42% of investors said they would be more likely to explore a new financial product. Despite the interest in new products, only 14% said they owned an annuity. Forex.com revealed that real estate and stock market investments are emerging as the most common sources Americans rely on for their retirement savings, with over one-third (35%) relying on these two.

Besides inflation, respondents to F&G’s survey also reported worries about the risk of the U.S. entering a recession (79%), followed by the 2024 presidential election (75%), F&G stated. Other fears included historically high global debt (67%) and the impact of generative artificial intelligence (50%).

F&G’s fourth annual Risk Tolerance Tracker was fielded from October 10 through 20, among a nationally representative sample of 1,644 U.S. adults at least 30 years old who have sole or shared financial decisionmaking responsibility for their household and own financial products valued at $10,000 or more.

Forex.com’s report surveyed 3,000 American citizens from October 17 through 27. The survey consisted of multiple-choice questions, allowing respondents to select from provided options.