Survey Shows Over 65s Not Necessarily Concerned About Inflation When Considering Their Investments
- 47.71% of Americans over 65 have not reconsidered their retirement investments due to inflation
- 86.15% have not made gold investments or considered investing in gold or other precious metals because of recent inflation
- 47.28% of Americans view precious metals as stable investments
- 64.63% of respondents that own precious metals physically hold them
- 24.3% of respondents maintain a gold or precious metals IRA
A recent nationwide survey shows that retirees are not necessarily concerned about inflation when considering their investments. The survey was conducted through a poll of people 65 years and older across the United States, and about 48% of respondents said that inflation has not caused them to reconsider their investment strategies for retirement.
Figure 1. Source: Google Surveys
This is a surprising finding, given the current state of the economy and the high rates of inflation America and other countries are currently experiencing.
There are several possible explanations for this disconnect between retirees and the economy. One possibility is that Americans over 65 years old have a different perspective on inflation than the general population. For example, retirees may be more concerned about preserving their capital than growing it, so they are less likely to take risks with their investments by making adjustments at a crucial stage.
Another possibility is that retirees are simply savvier about investing than the general population and have a better understanding of how to protect their assets from inflation in the first place, which is why they’re not concerned about modifying investments at this point in time.
Whatever the reason, this survey provides valuable insights into the retirement planning of Americans, showing that retirees are not as concerned about inflation as one might expect.
Gold as a Stable Investment
One interesting finding from the survey is that the majority of retiree respondents who actually increased precious metals investments in response to inflation (about 14%, as shown in Figure 2 below) view precious metals investments as a stable choice.
This is likely because gold is a finite resource that often performs well during times of volatility in the stock market and inflation.
Figure 2. Source: Google Surveys
The survey also found that about 65% of retirees who have made precious metals investments–whether recently or in the past–hold physical precious metals, and around 24% have gold or precious metals IRAs, as displayed below in Figure 3.
Figure 3. Source: Google Surveys
This suggests that a fairly significant number of retirees may have already turned to gold and other precious metals to safeguard their investments, and that decision is now making them feel more secure in the current inflationary environment.
Investment Plans by Gender
A gender-based analysis of the survey results showed very few significant differences between male and female respondents.
As illustrated in Figure 4 below, only 11.91% of male respondents have reconsidered their investments due to inflation compared to 11.68% of female respondents.
These numbers are not statistically significant. However, there were a few noteworthy pieces of information to be gleaned from this analysis.
The following are a few of the more intriguing findings:
- Among female respondents, 52.22% hold physical gold or other precious metals, and 27.78% have IRAs
- Among male respondents, 80% hold physical gold or other precious metals, and 20% have IRAs
- Among female respondents, 20.9% haven’t thought about reconsidering retirement investments.
- Among male respondents, 5.96% haven’t thought about reconsidering retirement investments.
Figure 4. Source: Google Surveys
Investment Plans by Age
Only Americans 65 years of age and older, typically considered retirement age, were surveyed. As such, their responses do not reflect the entirety of the American investor population or their views on inflation.
We focused on those of retirement age because they are the most likely to have a set retirement date and plan, as opposed to younger generations or those still in their working years. Younger generations have a lot more time to recoup losses caused by current inflation before retirement and likely have different outlooks on inflation and their retirement plans.
This survey was performed in September 2022 with a sample size of over 100 Americans nationwide. The reasons for conducting this survey were to better understand how retirees feel about inflation and their investment strategies.
The survey pool consisted of U.S. residents who were a minimum of 65 years old. Both males and females were surveyed.
Regarding Survey Results
It is important to note that the results of this survey should not be construed as investment advice. These survey results are opinions only and should not be used as investment tools. That said, the results of this survey offer some helpful insights into how retirees feel about inflation and their investment methods.
Overall, the survey paints of picture of unconcerned senior investors who are happy–or at least reasonably satisfied–with their retirement protections.
Why the Lack of Concern?
As of August 2022, the U.S. inflation rate sits at 8.3%. The rate is at its lowest level in several months after hitting a forty-year high of 9.1% in June 2022.
Given these significant rates, it’s interesting that Americans over age 65 are not as worried about inflation as one would think. And also concerning. This age group is typically more risk-averse than younger people with various decisions, including investments.
Hopefully, the findings of this survey indicate confidence in the stability of the long-term economy and/or the soundness of respondents’ current retirement investments and not neglect of this crucial planning detail.
In any case, it’s essential o stay up-to-date on changes in the inflation rate and how varying rates might impact your financial security in the long term.
Hedging Against Inflation
With inflation reaching historic highs and the stock market reaching new lows, there are plenty of reasons to pay close attention to your investments and pivot if necessary, even if many senior investors feel confident in their decisions.
If you’re anxious about inflation eating into your retirement investments, you can do a few things to protect yourself.
Investing in assets that have a history of outperforming during periods of inflation, such as real estate or commodities, can help you maintain the purchasing power of your savings. And if you’re looking for a safe haven during periods of economic uncertainty, gold is often seen as a good option.
Gold is a popular inflation hedge because it’s a rare metal that doesn’t corrode and is used in a range of industries, from jewelry to electronics. When inflation fears rise, and the stock market dips, the demand for gold typically increases, driving up the price.
Whether investing in precious metals, real estate, or another acquisition, the most important thing for investors to remember is to diversify their portfolios. By investing in a variety of asset classes, investors can do the best job of protecting themselves against economic risks.
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