Old North News

In its quarterly Real Financial Progress index, which is designed to measure Americans' sentiment around financial confidence, it has been revealed that more than a quarter of North Carolinians may need to delay retirement due to recent rises in living expenses and general 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 North Carolinians will need to delay their retirement."

In a news release, BMO Harris Bank revealed that 60% of those surveyed said that recent inflation has adversely affected their personal finances. About 1 in 4 of those individuals said that it has had a "major" impact. Overall, 36% of Americans have responded that they have reduced their savings rate while 21% said that they have reduced funds allocated for retirement. 

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,"

BMO estimates that 20.4% of North Carolina's population falls in the 18-34 age group, which means that up to a quarter of the total population could be facing delayed retirement at the hands of inflation. 

Other studies have confirmed the economic impacts on young people and the general population. According to the Wall Street Journal, a survey conducted with NORC at the University of Chicago revealed that 83% of Americans describe the state of the economy as "poor" or "not so good". More than 35% of respondents said that they were dissatisfied with their current financial situation. 

All of these factors spell trouble for the Biden administration, which is taking much of the heat for rising costs. Data shows that inflation has risen every month since President Joe Biden took office in January of last year.