As inflation soars under the Biden administration, Americans are becoming increasingly anxious about their retirement prospects.
According to a recent survey of nearly 4,600 adults, the amount of money people believe they need to save for a comfortable retirement has surged by 15% in just one year and a staggering 53% since 2020.
The survey reveals that the average American adult now believes they need $1.46 million to retire comfortably, up from $1.27 million a year ago.
Economist Teresa Ghilarducci attributes this heightened anxiety to concerns about healthcare costs and long-term care expenses. “Anxiety about retirement is sky-high,” she told the Wall Street Journal.
The survey also highlights generational differences in retirement expectations. Millennials, born between the early 1980s and late 1990s, now believe they will need $1.65 million when they retire, a significant increase from their estimate of just under $1 million in 2020.
Meanwhile, baby boomers, born between 1946 and 1964, said they would need $990,000, up from $830,000 in 2020.
Record high inflation is BANKRUPTING hard working Americans.
@JoeBiden is KILLING the middle class and STEALING their money through inflation.
https://t.co/IPEd0M6KcB— Coach Tommy Tuberville (@SenTuberville) April 2, 2024
While some may attribute this shift in outlook to the pandemic, the real culprit is the rampant inflation under the Biden administration, dubbed “Bidenflation.”
In just over three years, the cost of basic necessities like housing, energy, and food has skyrocketed.
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The price of a dozen eggs has quadrupled from 99 cents under former President Trump to $4.00 under President Biden, while gas prices have risen from $2.40 per gallon to $3.53.
Additionally, the cost of buying a home, high mortgage rates, and increasing auto and rent prices have further compounded the financial strain on Americans.
The lack of stability in the current economic climate makes it difficult for people to plan for the future, especially young people.
The uncertainty surrounding future costs of essential goods and services adds to the already stressful process of saving for retirement, which involves considering factors such as life expectancy, healthcare costs, Social Security, and leaving a legacy for heirs or charitable causes.
The Biden administration’s excessive government spending, deliberate crippling of domestic energy production, and failure to address illegal immigration have all contributed to this unstable and stressful economic environment.
The stock market gave 401(k)s a 19% boost last year. Inflation cooled. Still, lots of people feel no closer to hitting their magic number for retirement. Why it is so hard to predict how much you will need to retire? https://t.co/givZGZKniV https://t.co/givZGZKniV
— The Wall Street Journal (@WSJ) April 2, 2024
As a result, Americans are pressuring themselves to save more for retirement, with the target amount increasing from $1.1 million to $1.46 million.
While saving for retirement is crucial, it is equally important to minimize debt.
Paying off mortgages, car loans, and credit card balances can significantly reduce monthly expenses, allowing individuals to retire with less savings.
Additionally, eliminating high-interest debt, such as credit card balances, can free up more money to be allocated towards retirement savings.
The current economic climate under the Biden administration has created a sense of unease and uncertainty among Americans, particularly when it comes to their retirement prospects.
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The failure of “Bidenomics” and the resulting inflation has forced people to reassess their retirement goals and increase their target savings amounts.
