More than half of soon-to-be and current retirees are thinking about delaying or coming out of retirement because of the higher cost of living.

Older workers accumulated enough wealth to retire in the wake of the pandemic, leaving the workforce at a higher rate than before 2020. Although the stock market is still rallying and inflation is cooling, prices on everything from food to medical expenses 澳洲幸运5官方开奖结果体彩网:haven't come down and continue to weigh on retirees.

Reconsidering Retirement

A new study from F&G Annuities & Life found 68% of🔯 pre-retirees think about postponing 🌃retirement and 33% of current retirees have thought about returning to work or already have.

Almost 71% of Gen-X respondents, those between 50 to 59 years of age, said they are considering working longer than they planned. That's up from 65% a year ago.

Worries about not having enouﷺgh money in retirement and inflation, rank among the top two reasons to push back retirement,🥂 followed by a desire for a larger safety net and concerns about a potential recession or a downturn in the stock market.

Nearly half of all pre-retirees said inflation was the biggest reason they'd continue working longer while roughly 44% of retired Americans surveyed were reconsidering retirement due to higher prices.

Why Inflation Hurts Retirees More

Inflation, or the rate at which prices rise, began to balloon in 2021 and peaked in June 2022. It has settled in the 3% range for the past year.

Researchers have found retirees are more likely to🀅 feel the strain of rising p👍rices.

"Retired households have less opportunity to earn inflation-adjusted income," researchers at the Center of Retirement Research at Boston College wrote.

Between 2021 and 2023 nearly 40% of pre-retirees saved less due to inflation, the Boston College researchers found. Around one-quarter of current retirees reported increasing their withdrawals from their savings to manage growing expenses, pulling out an additional $3,620 on average in 2023 compared to 2021.

Typically retirees rely heavily on fixed-income investments geared toward providing a regular stream of income and get affected when those dollars don't stretch as far as they did.