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Inflation is reducing Americans' pension savings

by endroar
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Results: A survey by Allianz Life Insurance Company for the first quarter of 2024 found that 7 out of 10 people in the United States have reduced contributions to pension funds due to high inflation. Two out of every three are concerned about paying service charges; Not so much about retirement savings.

Another troubling news is that two in five Americans say high inflation has forced them to give up their retirement savings.
Analysts say at least 15 percent of income should be saved every year, including contributions from the individual level to institutional contributions. This is a good target for most people. There is no problem if the amount of savings is small in the beginning, it can be increased later.

Some suggest saving 10 times your pre-retirement income before age 67. For that reason, they suggest savings equal to 1 year's income by the age of 30, 3 years by 40 years, 6 years by 50 years and 8 years' income by 60 years.

But all this will depend on inflation. That it is a silent killer is evident from the state of retirement savings in countries like the United States.


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