WASHINGTON, DC, June 9 — Some 40% of America’s workforce said “it will take a miracle” to retire securely, according to the Natixis Global Retirement Index. However, that was back when the inflation rate was hovering between 2.6% and 4.2% in March and April of 2021. The current inflation rate in the U.S. today is well above 8% and climbing — just about double what it was a year ago.
“Since the pandemic, supply chain issues and consumer demand have dramatically pushed up short-term inflation in the U.S. The Consumer Price Index, a key measure of inflation, was 4.7% in 2021, a level unseen since 1990, according to Statista. The monthly 12-month inflation rate in February of 2022 was 7.9%, and with the advent of the war in Ukraine, some experts are predicting that U.S. inflation will clock in at 9% or more for 2022.” That’s the assessment of Doug Kinsey, a partner in Artifex Financial Group, in an article published recently at Kiplinger.com.
In fact, inflation is at the top of list of biggest problems facing the country, according to Pew Research. Pew’s recent polling found that a whopping 70% of us say so.
Here’s how the experts at Society for Human Resource Management assess the retirement situation:
- 66 percent are worried about how inflation will affect their ability to save for retirement.
- 73 percent of Millennials and 74 percent of Generation X are worried about inflation’s effect on their retirement savings.
- 43 percent of respondents because of inflation have had to tap into finances that they previously had set aside for retirement.
The negative impact of inflation on retirement is certainly due to these factors. In fact, the folks at Nexis Global tell us that a large majority of us — 59% — believe that they are going to put off plans for retirement and more than a third of the workforce will never have enough money to be able to retire.
President Biden took office in January 2021 when the inflation rate stood at modest 1.6%. Here we are, less than two years later and the rate of inflation hovers on or near 8.5% and climbing. Mr. Biden can offer any number of “not-my-fault” excuses, but the majority of the nation — even some members of his own party — seem to believe that his policies have, at best, helped fuel the current inflationary spiral, if not out-rightly caused it.
The Brookings think-tank suggests that “inflation is President Biden’s biggest problem.”
A report Brookings published in February, says that “Since the New Deal, Americans have come to believe that presidents exercise considerable control over the economy, and they expect President Biden to do something about inflation. Shortages of goods on grocery store shelves and delays receiving goods ordered online have convinced the people that unclogging the supply chain is an important part of the solution. But despite the administration’s claims, they haven’t seen much progress on this front. The contrast between the high visibility of the pandemic task force and the virtual disappearance of supply chain task force has been dramatic, especially because the people now care more about rising prices than falling infection rates.”
Want more proof that America, for the most part, puts the blame for inflation on President Biden? You need look no further than his dismal approval ratings. In April, his ratings took a nose dive for the fourth consecutive time. A CNBC survey found that “his approval rating on the economy dropped for a fourth straight survey to just 35%, with 60% disapproving, putting the president a deep 25 points underwater.”
Any wonder? The American dream of retirement has turned into a nightmare.