Inflation worries keep some from retiring and have others returning to work
PITTSBURGH (KDKA) -- The rising inflation rate is having an impact on workers who had hoped to retire and retirees who feel the need to return to work.
As money editor Jon Delano reports, figuring out the right time to retire is more challenging than ever.
In her early 70s, JoEllen Smith, a licensed professional counselor in Squirrel Hill, is still working part-time, and inflation is part of the reason why.
"I'm continuing to work at about the same amount of hours that I have been before," Smith said.
She's hardly alone, according to a survey conducted by Nationwide.
"About 13 percent of consumers that are near retirement age, whether Gen X or Boomers, have either already postponed or are considering plans to postpone retirement," said Eric Henderson, president of Nationwide Annuity.
Local financial planners said it's happening here, too, as older folks rethink the impact of inflation on retirement.
"A lot of them are approaching retirement or have just made the decision to move into retirement and now are rethinking that. Is now the right time to be retiring? Or if they've already retired, how can we fit work back into our lives?" says Diane Pearson, a certified financial planner.
Pearson says both inflation and the roller-coaster stock market create retirement jitters, especially since retirees live longer.
If you make it to age 65, you can expect to live another 18 to 20 years.
"People are starting to second-guess, thinking maybe I need some additional income coming in," she adds.
Bob Fragasso, a certified financial planner, hopes this post-pandemic, energy-fueled, war-related inflation is short-term.
"Sustaining 8.5 (percent) inflation is probably not in our future, but nobody can know that. We can't see around corners," Fragasso said.
The White House is hopeful that this inflation will come down soon, as White House Deputy Press Secretary Chris Meagher told KDKA's Jon Delano late Tuesday.
"Economists continue to predict inflation will begin to ease later this year, and we're going to continue to do everything we can across the board to keep costs low," Meagher said.
Given the economic uncertainties in the meantime, working part-time helps Smith, she said, to "be able to stay in my home, enjoy my hobbies and have a dog."
The planners also said if inflation and the stock market keep you working past retirement age, it helps to find a job you enjoy.
