Confidence on Employee Retirement Plans Decline Due to Inflation, Survey Says

A recent survey by the Greenwald Research and the Employee Benefit Research Institute revealed that the Americans’ confidence on employee retirement plans declined due to inflation. Reportedly, this decline has been the biggest since the Great Recession happened.

On April 27, a survey recently released by the Greenwald Research and the Employee Benefit Research Institute revealed that the Americans’ confidence on employee retirement plans have been declining due to inflation.

According to Rearick, the 2,537 respondents— some of which were workers, some retirees — were anxious about their money lasting through their retirement. This is because since 2022, the American employees’ confidence on the longevity of their retirement savings have declined from 73% to 64%. Reports say this decline has been the biggest since the Great Recession happened.

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How Inflation Affected Confidence on Employee Retirement Plans

According to Adamczyk, the inflation rate reached its highest in June 2022 at 9.1%. To date, it remains above average at 5%. However, amidst the rising inflation, several Americans are still urged to stop retirement savings to pay everyday expenses. Since 2022, savings balances have reportedly declined, with 40% of employees and 58% of retirees reporting lower savings.

The reports state that 73% of employees and 58% of retirees are anxious of having to cut their expenses because of inflation. In addition, debt has been a problem for 60% of employees and 35% of retirees since 2022. This is because inflation slows payments and allows interests to accrue.

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