Inflation in the U.S. is taking a toll on consumers and retirement savers, according to Allianz Life's third-quarter market perceptions study.
Fifty-four percent of study participants reported that they have stopped or reduced retirement savings because of inflation, and 43% said rising costs have forced them to dip into their retirement savings.
The study found that 65% of millennials have stopped or reduced retirement savings because of inflation, compared with 40% of baby boomers and 59% of Gen Xers.
At the same time, 72% of Gen Xers worry that if they do not increase their retirement savings soon, it will be too late to have a comfortable retirement. More Gen Xers than millennials and boomers worry that the rising cost of living will affect their retirement plans.
Eighty percent of respondents said they fear that rising inflation will continue to weaken their income's purchasing power in the next six months, while 75% are worried the rising cost of living will affect their retirement plans.
Three-quarters of those surveyed said a guaranteed lifetime income option, such as an annuity, as part of their retirement strategy would ease concerns about inflation.
"Inflation is not going away tomorrow," Kelly LaVigne, vice president of consumer insights at Allianz Life, said in a statement. "Consumers need to prepare themselves by talking to a financial professional and incorporating some ways to help fight the effects of inflation into their portfolio so that long-term inflation doesn't affect retirement."
