High Inflation Has Seniors Facing “Unretirement”
- April 28, 2023
- Phil Cannella
- 0 Comments
As inflation has soared during the COVID-19 pandemic and beyond, a growing subset of retirees have been forced to return to work. Data from an April 2022 report by job website Indeed showed that 3.2% of workers who were retired the year before working again. That trend has continued into 2023. A recent survey by human resources firm Paychex revealed that 1 in 6 retirees are considering returning to work. Fifty-three percent of respondents said they’re considering “unretiring” because of financial concerns.
Causes of Inflation
The COVID-19 pandemic and its aftermath proved to be a perfect storm for high inflation. The virus itself, and the business closures that followed in its wake, severely impacted the global supply chain. Food, oil, building materials, computer chips, and more were all difficult to come by during the pandemic, and even as COVID restrictions were lifted, supplies were slow to be replenished.
At the same time, economic stimulus measures in the U.S. gave businesses and individuals an influx of cash. Government stimulus checks and PPP loans to businesses kicked off a buying frenzy. Those who were penned up inside during the pandemic were eager to get back to their normal lives. Suddenly, demand for goods and services was as high, if not higher, than it was prior to the pandemic. With supply unable to keep up with demand, prices skyrocketed. Those in or near retirement were especially hard hit. Even a 5.9% Social Security cost-of-living adjustment – the largest in history – was not enough to help retiree incomes keep pace with inflation rates unseen since the 1980s.
Stock Market Volatility
Today, almost a year after inflation reached a peak of 9.1% in June 2022, rates are still higher than the Federal Reserve would like them to be. The Fed instituted a series of interest rate hikes aimed at calming rampant inflation, but those measures have negatively impacted the stock market.. A market that broke records throughout 2021 has been up and down since the Fed began raising their benchmark interest rate in March 2022. This was bad news for anyone invested in securities-based financial vehicles like stocks, bonds, and mutual funds. Retirees who have seen their nest eggs depleted have been forced to return to work so they can have enough income to meet their expenses.
Protecting Your Nest Egg From Inflation and Stock Market Crashes
If you are one of the millions of retirees who may have to go back to work in the near future, you know that protecting your nest egg is crucial to your standard of living. Inflation, stock market crashes, and a range of other factors threaten to take the money you depend on in your golden years. If you want to keep your hard-earned money, there is something you can do to protect it.
The Crash Proof Retirement® System is a proven method of preserving your principal while also crediting interest comparable to risky securities-based investments. Crash Proof® Vehicles are based in the financial life insurance industry and are guaranteed to prevent you from losing your principal during a stock market crash. They also come with inflation fighters that allow you to withdraw money every year with no penalty so you can have the income you need to meet your expenses when the prices of goods and services go up.
If you would like to know more about the Crash Proof® Retirement System, call 1-800-722-9728 to schedule your free financial checkup or to discuss retirement planning in Philadelphia, PA and in communities around the country.
Leave a Reply
You must be logged in to post a comment.