CFP Board survey indicates inflation is a concern for 9 in 10 Americans

Rising prices trouble nearly nine in 10 Americans, according to a CFP Board gauge of consumer sentiment that's part of a campaign to raise awareness about the credential.

The Certified Financial Planner Board of Standards Inc. survey found that 89% of respondents are worried about the cost of living and 87% indicate that inflation is their top concern. That mindset has led to purchasing habits that focus on buying items on sale (72%), buying cheaper brands (65%), cooking at home (65%) and buying fewer products (62%).

In personal finance, paying rent or mortgage is the top concern for 55% of respondents, followed by having money for recreation (52%) and for a major purchase (50%). The vast majority also are concerned about saving money (82%), while 69% are concerned about building up a retirement nest egg.

The survey is based on a sample of 944 adults who completed an online questionnaire on Feb. 28.

The poll reflects the recent challenging economy, said CFP Board CEO Kevin Keller, who used the results to pitch the services of CFPs in helping Americans navigate a difficult financial environment.

“From the pandemic to the latest banking news, uncertainty has been prevalent,” Keller said in a statement. “This uneasiness 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.”

The survey is the first of a new series launched by the CFP Board to help CFPs keep a finger on the pulse of consumer sentiment and changing attitudes, said Michael Kothakota, head of research at the CFP Board.

The poll augments the CFP Board’s ongoing advertising campaign that can now more explicitly encourage viewers and listeners to hire a CFP.

“By aligning CFP Board’s consumer surveys with our new public awareness campaign, we can better help consumers understand the need for professional financial advice and the unique value that a CFP® professional can bring,” Kothakota said in an email through a CFP Board spokesperson.

The survey results ring true with two CFPs.

“Everyone’s having concerns about inflation right now,” said Jason Stein, a senior financial planner at Bluepoint Wealth Advisors. “Among clients and prospects, it’s a hot topic.”

Andrew Fincher, an advisor at VLP Financial Advisors, said that inflation is “top of mind” for most people.

“For the vast majority of clients, it’s about quelling their concerns,” Fincher said. “We remind them that it’s been artificially low for a decade. It was bound to rebound somewhat.”

Helping clients calm down is usually more important than adjusting a portfolio to respond to inflation.

“We always try to take a measured, diversified approach, regardless of the environment,” Fincher said.

Being the reassuring voice means helping clients figure out how much inflation is impacting them, Stein said. For instance, retirees who have paid off their home aren’t affected by the part of the consumer price index that reflects an increase in rent or housing prices.

“[Inflation] affects everybody differently,” Stein said. “It’s important to dissect it at the individual level.”