Inflation a concern for those approaching retirement

Investors who are retired or nearing retirement are concerned about how low interest rates and rising inflation will affect them in retirement, according to a recent survey by Global Atlantic Financial Group.

Eighty-seven percent of the investors surveyed said they had recently felt “sticker shock” related to purchases of groceries, meals out or travel, and 57% expect inflation to increase this year.

Seventy-one percent worry that low interest rates will hamper the growth of their retirement assets, and 61% think the combination of low rates and higher inflation make it tougher to create a retirement income stream that lasts the rest of their lives.

Global Atlantic surveyed more than 1,000 investors who were 55 to 70 and had assets ranging from $250,000 to $2 million, but no pension. The survey was conducted in January.

A separate survey by Principal Financial Group of 2,000 individuals found that investors of all ages are worried about whether they’ll have enough money for a comfortable retirement. Just under half (49%) said they weren’t confident they would have enough, a portion that rose to 52% among baby boomers.

Some of the uncertainty relate to worries about the outlook for Social Security, with 64% of investors, including 73% of Gen Z workers, saying they were concerned about the program’s viability.

[More: Retiring in an age of uncertainty]