Cost-of-living increases are eating into consumers' ability to save for retirement, according to a newly released survey conducted by the Certified Financial Planner Board of Standards.
The ability to save money is a concern for many Americans (82%), the CFP Board Consumer Sentiment Survey on the cost of living recently found.
This concern increases for those 45 and older (86% versus 78% overall), perhaps because of the shorter time period they have to save, the survey states.
The concern is also true for current savings or emergency funds — 75% of those 45 and older are concerned compared to 68% of those under 45.
"With 69% of consumers concerned about preparing for retirement, one-third (34%) have saved more for retirement this past year," the survey states. "Despite the increase in savings, consumers concerned about retirement preparation may benefit from consulting a CFP professional."
Over the past year, 27% diversified their portfolios, 21% pushed back retirement and 16% purchased long-term care insurance, the survey found.
"These past several years have not been easy for Americans," CFP Board CEO Kevin Keller said in releasing the survey. "From the pandemic to the latest banking news, uncertainty has been prevalent."
This uneasiness, Keller added, "increases the need for competent and ethical financial advice. CFP professionals are uniquely positioned to meet this demand and help American consumers navigate uncertainty while prioritizing their short- and long-term financial goals."
