Washington, D.C. — A new national survey from U.S. News & World Report’s 360 Reviews finds half of U.S. adults saving for retirement paused saving for retirement at some point in 2022, specifically due to skyrocketing cost-of-living increases; nearly one-third (32%) had to withdraw some of their retirement savings in 2022 in order to keep up with the rising costs of living.
U.S. News surveyed 2,000 U.S. adults who have saved for retirement for more than five years regarding the ways their retirement savings habits have changed due to inflation and cost-of-living hikes in 2022, their retirement savings stressors and more. Survey responses were weighted in order to be representative of the U.S. population.
The survey finds that nearly three-fourths (72%) of surveyed Americans have reevaluated their retirement plans due to COVID-19 and its economic effects, with one quarter (27%) saying they have greatly reevaluated their plans.
“The survey data shows a clear correlation between the rise of inflation and Americans’ delayed or altered retirement plans. Americans continue to worry about the future repercussions of the COVID-19 pandemic,” said Scott Nyerges, senior insurance editor, 360 Reviews. “However, with 57% of respondents believing the economy will be stronger by the end of 2023 and 61% believing their personal retirement situation will improve in 2023, optimism does remain among the public,” added Nyerges.
The “Retirement and Inflation Survey” also highlighted participants’ thoughts on the “American Dream” and found that 59% believe the typical dream of owning a home, being debt-free and retiring comfortably is attainable for their generation, with 48% saying the dream is attainable for the generation after theirs.
Additional survey highlights include:
- 88% believe the generation after theirs will have a more difficult time retiring than theirs will
- 82% worry about a recession affecting their retirement
- 65% anticipate having to work post-retirement to supplement their social security income