I have a report today that found 30% of retirees say they are considering working a temporary job (between one and three shifts per week). Many of these people are worried about outliving their retirement savings. Increased cost of living is the driving force behind why the aging population is considering un-retirement. Noting that 71.6% of retirees cite inflation as the reason that going back to work is on their mind. Even though inflation has cooled to an annual rate of 3.4%, down from the peak above 9% in June 2022, just about everything costs more than it did in 2021 when prices started going up. The jump in the cost of living has been large enough that many older Americans who thought they were financially prepared for retirement are now reassessing if that’s actually the case. While Social Security benefits are annually adjusted for changes in the cost of living, retirees also rely on other income in retirement like 401(k) withdrawals or fixed-income savings and they can be negatively affected by inflation, meaning the money doesn’t go as far as anticipated. A report from an economist says that more than 20% of retirees and near-retirees increased their retirement account withdrawals between 2021 and 2023 because of inflation. The average increase in withdrawals was $3,620 over those two years. If you have concerns go to yoursafemoneyshow.com for contact information.
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