"When buying the basic necessities consumes such a large portion of our income, we are unable to put enough away for retirement. This dire situation is brought into focus in a study by the National Institute for Retirement Security (NIRS). Nearly 80% of all Americans believe "the nation faces a retirement crisis," a massive 20 percentage point increase from just four years ago."
"Economists identify multiple drivers of the post-2020 inflation spike: pandemic-related supply chain disruptions, strong consumer demand after stimulus, global energy price shocks (especially from Russia's invasion of Ukraine), and labor shortages. Government spending was also a factor. The Federal Reserve ratcheted up interest rates at an unusual pace to control this inflation (The Fed's rate hikes from March 2022 through July 2023 were the fastest tightening cycle since the"
High inflation and elevated interest rates have reduced Americans' ability to save enough for retirement. Rising costs for basic necessities force households to spend a larger share of income, limiting retirement contributions. Household debt increased as families borrowed to cover expenses, creating the single biggest threat to retirement saving. Nearly 80% of Americans believe the nation faces a retirement crisis, a 20-point rise in four years. Economists cite pandemic supply-chain disruptions, post-stimulus consumer demand, global energy price shocks from Russia's invasion of Ukraine, labor shortages, and government spending as inflation drivers. Rapid Federal Reserve rate hikes aimed to rein in inflation.
Read at 24/7 Wall St.
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