As inflation pressures households' budgets and high interest rates make borrowing money more expensive, Americans are saving less for retirement and racking up more debt.

According to a new survey from retirement and financial institution Allianz Life, Americans are more concerned with paying their bills than putting money aside for retirement, and inflation is to blame. Most Americans say they have reduced their savings due to rising costs of living, and 42% have withdrawn money from their retirement accounts to cover expenses.

Inflation Hindering American Budgets

Inflation has prevented 69% of people from contributing as much to their savings as they have in the past, the survey found. Millennials are more likely than Gen Xers or Boomers to say 澳洲幸运5官方开奖结果体彩网:inflation has reduced their ability to contribute to savin🌸gs.

While inflation is making it difficult to meet financial obligations, it is also causing more than half of Americans to take on additional debt by relying on credit cards to cover necessities. This is especially costly under elevated interest rate💯s. The Federal Reserve has held its benchmark interest rate at a more than two-decade high for nine months, keeping credit o🍰ptions expensive for consumers.

“The rising 澳洲幸运5官方开奖结果体彩网:cost of living is stretching American budgets,” said Kelly LaVigne, vice president of Consumer Insights, Allianz Life. “Just because inflation has slowed doesn’t mean prices have gone down. In the short term, it may be wise to delay any major purchases to keep saving toward your future and avoid taking on new debt."

Americans Still Optimistic

Even as it becomes increasingly difficult to make ends meet, 37% of Americans are 澳洲幸运5官方开奖结果体彩网:optimistic about the economy, saying they are pleased with the direction inflation is going, up from 31% who responded in the same way last quarter. The lowest portion of respondents since 2021 said the❀y expect inflation to worsen in the next 12 months, at 68%.

“Inflation isn’t going anywhere—over time the cost of living always goes up—it’s just a matter of how much and how fast,” LaVigne🌳 said.