Study: Americans are saving less for retirement

InvestigateTV - Around 27% of Americans saved less for retirement than they normally would have because of inflation, a recent NerdWallet study found.

Alana Benson, an investing spokesperson with NerdWallet, said inflation really reduces your money’s purchasing power.

“If you had a year’s worth of grocery money saved up, that same dollar amount may only be able to purchase maybe eight months’ worth of groceries in a high inflation environment,” Benson explained. “So that means that for those who have been saving for retirement, they may not be able to support themselves as long with the money that they’ve saved.”

Benson said investing can be intimidating, which is why the earlier your start the better. You’ll have to save less over time because of how the interest will compound. And she said you should think about how much you’ll need to save to retire comfortably.

Benson shared a few suggestions for retirement savings strategies:

• Consider upping your retirement contributions
• Decrease current spending to save more
• Think about investing
• Use a retirement calculator to plan
• Consult with a financial planner

She recommended to focus on what you can control. While inflation can affect your retirement plans, those things aren’t within your power to change. But you can decide if you should invest, what you invest in, how much you invest, and when you start investing.

Copyright 2023 Gray Media Group, Inc. All rights reserved.