Fully 60% of investors surveyed expressed inflation concerns, while only 41% of financial advisors think that rising inflation is a concern for investors, a significant disconnect between the two groups.
What’s more, only 34% of advisors were personally concerned about inflation over the next 12 months.
“Red flags should be going up for financial advisors as gas prices spike and interest rates remain at multi-decade lows,” William Finnegan, senior managing director and head of U.S. retail marketing for MFS, said in a statement. “The conversation needs to shift now, from talking about missing market rallies to what’s actually happening to their clients’ current and future purchasing power: it is eroding. Investors are unaware of the ‘cost-of-comfort’ that comes with the perceived safety of cash—their cash is steadily losing value due to inflation.”