More Pennsylvanians may have trouble retiring on schedule, according to the index. | Canva
More Pennsylvanians may have trouble retiring on schedule, according to the index. | Canva
According to a new index published by BMO Harris Bank, about a quarter of Pennsylvanians will need to delay their retirement timeline due to recent cost of living increases and associated inflation.
A statement accompanying the release of the index stated that "Inflation and rising consumer costs are severely affecting Americans' financial situations, and according to recent index results from BMO Harris Bank, in addition to altering their spending habits, Americans need to alter their saving habits too. Results show 1 in 4 Pennsylvanians will need to delay their retirement."
The index is called the BMO Real Financial Progress Index and it is a quarterly survey conducted by BMO that is designed to measure financial confidence in Americans. Inflation is rising ever higher as consumers, including those nearing retirement age, struggle to keep up with rising costs.
In the news release, Paul Dilda, head of consumer strategy for BMO Harris Bank, said, "Prices across the board – from cars and gasoline to groceries and other everyday essentials – are rising at the fastest pace since the 1980s. Consumers must think differently about their finances in this inflationary environment,"
Nearly 60% of respondents to the index said that inflation has already severely impacted their personal finances. Overall, about 36% of all Americans responded that they have reduced their savings during recent months as a result of inflation.
Impacted the most were individuals aged 18-34. This age range represents 20.2% of the population in Pennsylvania.
Other studies have confirmed the negative impact on the general population. According to the Wall Street Journal, a survey conducted with NORC at the University of Chicago revealed that up to 83% of Americans describe the economy as "poor" or "not so good". A third of respondents said that they weren't satisfied with their current financial situation.
This all represents a big problem for the Biden administration as the election nears closer with each passing day. Data shows that inflation has risen every month since Biden took office last year.
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