Americans worry inflation will make retirement unaffordable

Concerned about their ability to manage the rising cost of living as they age, 57% of Americans are worried that inflation will make their basic retirement expenses unaffordable.

According to a study of retirement risk readiness by Allianz Life, 59% believe that the rising cost of living will prevent them from enjoying their retirement.

Despite their concerns, however, the study found that only 24% are discussing the impact of inflation with their financial professional, and only 21% say they will use a financial product that allows for the opportunity for increasing income as a way to help address inflation.

More than half (52%) of the retirees polled said they view rising health care costs as one of the greatest risks to their retirement security, with nearly 40% of non-retirees sharing that concern about their future expenses. Both groups seem to have a poor sense of what their health care costs are now or will be in the future, with 48% of current retirees saying they have no idea of how much they currently spend on health care costs and 62% of non-retirees saying they have no idea of how much they will spend on health care once they retire.

This may prove troublesome, Allianz said in a release, since it found that 34% of those who have yet to retire say health issues are one of the most likely reasons they may have to retire earlier than expected.

[More: Client anxiety about retirement planning escalates]

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