The majority of Americans with at least $250,000 in investable assets are concerned about the effects of inflation on their finances, with Generation Xers particularly worried, according to a new survey.
Sixty-seven percent of Americans are worried about the country’s economic outlook over the next 12 months and 59% are concerned about their current investments eroding in value, State Street says it found in a survey of 243 adults with investable assets of $250,000 or more. The survey was conducted from June 28 to July 5.
Moreover, 58% of respondents believe the U.S. economy is heading for a recession in the next six to 12 months and only 17% believe that inflation has peaked, according to the survey.
As a result, 51% of respondents have cut back on discretionary spending such as dining out and entertainment, 35% are spending less on vacations or have delayed a major purchase and 29% have had to reduce spending on essentials such as groceries and gasoline, State Street says it found.
Gen Xers are more concerned than other generations about what’s to come: 56% are worried about being able to retire when they originally planned, compared to 41% of millennials and 31% of baby boomers, and 56% of Gen Xers are concerned about being able to afford expenses in retirement, compared to 41% of millennials and 44% of boomers, according to the survey.
Despite the concerns, however, most investors are staying on track with their savings, State Street says.
“Notably, less than one-quarter of Americans were willing to curtail contributions to their retirement savings or their child’s education savings, which demonstrates a firm commitment to their long-term financial goals.”