Inflation has come down from the dizzying 9.1% rate in 2022, but Americans are still worried rising prices will prevent them from retiring comfortably, a new survey by brokerage Charles Schwab showed.
Inflation is the top obstacle to a comfortable retirement, said 57% of the 1,000 U.S. 401(k) plan participants and an additional 100 Gen Z plan participants surveyed last spring.
Many Americans have found ways to continue saving, but still, only 34% of participants feel very likely to achieve their savings goals, the survey showed. That’s down from 43% in 2024, Schwab said.
“401(k) investors continue to face uncertainty,” said Lee McAdoo, managing director of Schwab Retirement Plan Services. “Inflation and market volatility remain top of mind, which can make it difficult to develop a long-term retirement strategy.”
Most Americans are cutting back their spending to prioritize retirement savings, Schwab said. Four in 10 are cutting the number of purchases they make and buying cheaper products (39%) to maintain their 401(k) contributions. Only 11% say they have reduced their 401(k) contributions due to economic conditions, the survey showed.
