SOA Survey: Inflation and Caregiving Burdens Threaten US Retirement Readiness
A recent survey by the Society of Actuaries Research Institute reveals that Americans nearing retirement face significant financial strain due to inflation, unexpected emergencies, and caregiving obligations. The study indicates that 59% of retirees stopped working earlier than anticipated, with deteriorating health being a primary driver for lower-income individuals. Pre-retirees are particularly vulnerable; nearly 30% reported tapping at least 10% of their savings to handle family emergencies, a sharp increase from previous years. Inflation continues to weigh heavily on both daily finances and long-term planning efforts. Additionally, caregiving responsibilities present a major challenge, with 35% of pre-retirees expecting to need future care support, yet nearly half have made no preparations. Many are also financially supporting adult children or aging parents, further limiting their ability to save. Steve Siegel, a senior practice research actuary, emphasizes that retirement planning must account for unexpected shocks rather than just best-case scenarios. This biennial study, part of the Aging and Retirement Strategic Research Program, aims to help improve planning strategies by highlighting these critical financial risks facing workers and retirees across various income levels in the United States.
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SOA Survey: Inflation and Caregiving Burdens Threaten US Retirement Readiness
A recent survey by the Society of Actuaries Research Institute reveals that Americans nearing retirement face significant financial strain due to inflation, unexpected emergencies, and caregiving obligations. The study indicates that 59% of retirees stopped working earlier than anticipated, with deteriorating health being a primary driver for lower-income individuals. Pre-retirees are particularly vulnerable; nearly 30% reported tapping at least 10% of their savings to handle family emergencies, a sharp increase from previous years. Inflation continues to weigh heavily on both daily finances and long-term planning efforts. Additionally, caregiving responsibilities present a major challenge, with 35% of pre-retirees expecting to need future care support, yet nearly half have made no preparations. Many are also financially supporting adult children or aging parents, further limiting their ability to save. Steve Siegel, a senior practice research actuary, emphasizes that retirement planning must account for unexpected shocks rather than just best-case scenarios. This biennial study, part of the Aging and Retirement Strategic Research Program, aims to help improve planning strategies by highlighting these critical financial risks facing workers and retirees across various income levels in the United States.
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