Retirement-Age Investors Worried About Low Interest Rates, Inflation

Seven in 10 retirement-age investors believe that rising inflation will negatively affect their retirement savings, according to a survey released Friday by Global Atlantic Financial Group.

Forty-six percent of participants who have fixed income investments are concerned that low interest rates will imperil their retirement income, and a similar percentage worry that current low rates coupled with rising inflation will make it harder to create a sustainable retirement income stream.

The Real Threat of Inflation in Retirement

Artemis Strategy Group fielded the online survey in August among 1,013 investors 59 to 75 years old with more than $250,000 in investable assets.

Sixty-four percent of respondents said they are more open to financial advice than they were before the pandemic. Fifty-one percent of those who avail themselves of financial advice reported that they had spoken with their advisor about low interest rates. 

“Those on the cusp of retirement are paying close attention to economic issues such as inflation and low interest rates, and they recognize that it might be a good time to revisit their retirement strategies,” Paula Nelson, co-head of individual markets at Global Atlantic, said in a statement. 

“Thankfully, they are very receptive to advice from financial professionals, and our research has indicated that they are ready to have these conversations.” 

The survey also found that 73% of retirement-age investors worry about the effect of a resurgence of COVID-19 on the stock market, 57% have concerns about the effect on their personal life and over 56% are concerned about a negative impact on their retirement savings. 

Global Atlantic pointed financial professionals and consumers to the firm’s “Risk Reset” webpage, where they can find educational resources on how to protect retirement savings from inflation, low-interest rates, bond value risk and market instability.