Retirement Savings Hit Hard by Inflation in 2022

A new study by the TIAA Institute and George Washington University's Global Financial Literacy Excellence Center found that high inflation in 2022 caused a quarter of Americans to cut back on their retirement savings, with 12% quitting saving entirely. The reduction in savings could have lasting effects, making it more difficult for people to achieve a secure retirement. The study also found that 30% of respondents found it difficult to make ends meet, 26% were debt constrained, and 39% lacked sufficient savings to cover one month of living expenses. Individuals with low financial literacy were more likely to report money woes and stop saving for retirement. Experts are calling for a focus on helping people of all ages, races, and genders, especially the most vulnerable.