A year of high inflation and market volatility hit retirees nest eggs, a new survey shows.
In 2023, average retirees have $21,000 less savings than they did in the beginning of 2022, according to a survey by Clever Real Estate. The loss was the result of a 10% drop from an average savings of $191,659 to $170,726. The survey said that the share of retirees with nothing saved increased from 30% to 37%.
Retirement savings have been impacted by inflation, according to 83% of retirees. Many retirees have been left without the recommended amount of savings to live a comfortable retirement because of the economic conditions, according to experts.
According to guidelines from Fidelity Investments, retirees should have saved 10 times their income by age 67. According to First Republic bank, the average American's income is estimated to be $54,132.
By the time they retire, retirees would need to save $541,320, according to Fidelity's guidelines. The average retirement savings is just $170,726, according to Clever's research.
Inflation has risen at a slower rate than in previous months, but it still strained the budgets of many retirees in 2022. According to Clever's survey, 44% of retirees say they struggle to pay basic living expenses.
Here are some of the most common expenses retirees had difficulty affording, according to the survey.
As costs rise, some retirees have gone to extreme measures to stretch their savings, according to Clever's survey report.
The survey said that 18% of retirees skipped meals and 24% skipped medical treatment or appointments to stretch their savings.
More than half of Americans are concerned by finances that cause anxiety.
A survey from Betterment at Work found that current economic conditions are not only affecting Americans savings, but it's also taking a toll on their mental health. Seventy-one percent of respondents said that their finances caused them anxiety and 88% said rising costs of living have noticeably increased their financial anxiety this year.
Betterment at Work found these are some of the most troublesome financial stressors.
The changing economic tides have impacted employees and employers in different ways, according to the general manager of Betterment at Work, Kristen Carlisle. Financial wellness benefits have become more important than ever, because many workers are struggling with new challenges and financial anxiety. Email The Credible Money Expert at Money Expert Credible.com and ask a question that could be answered by Credible in our Money Expert column.