Higher Prices Cutting Into Savings
Rising food and gas prices are forcing more Americans to dip into their retirement and investment funds, a new study finds.
In a survey of more than 800 households nationwide by Edward Jones, a Missouri-based financial brokerage firm, over half said they're digging into savings to cope with higher prices.
While reduced savings were reported across all age and income groups, the largest number of cutbacks were among survey respondents earning $35,000 - $50,000. Younger people also appeared to be hardest hit, with about 85 percent of those aged 18-24 reporting decreased savings, the survey found.
“Rising food prices and energy prices have clearly affected Americans at nearly every income level,” Clif Helbert, a retirement planning principal at Edward Jones, said in a statement. “Gas prices are unpredictable, but the need to save for retirement isn't,” he said.