YOUNGSTOWN, Ohio (WKBN) – Financial specialists say inflation is at an all-time high. Many adults say they’ve had to stop saving for retirement to survive through the high inflation levels.
American Financial advisor Richard Horvath says the rising prices create a burden for everyone.
“Inflation is very detrimental to not only those that are taking income now from their retirement plans but also just the average person that’s getting their paycheck every day,” he said.
Karl Barto, an associate for Sherwin Williams, began working at the age of 18 and retired at 62. After being retired for 11 years, he had to go back to work because his Social Security and 401(k) couldn’t cover his expenses.
“I’m just thankful I was able to, you know. There’s some people that are my age, I’m 73 years old. There’s some people my age that probably couldn’t go back to work because their health isn’t good enough,” he said.
Dr. Chen, a financial planner/analyst, says having a long-term outlook when planning your finances is crucial. He also believes younger generations should invest in the stock market early on to prepare for their retirement.
“I think for investment for your financial plan, you need to look at the long term. Have a long-term point of view, like five to 10 years,” he said.
“I’m just investing as much as I possibly can into my Roth IRA. That way it builds, and so by the time I retire, I have enough money that like people today are struggling with,” said Joe Barnes, Baldwin Wallace University.
Horvath also stressed the importance of investing for two reasons. He says it is difficult to live only on Social Security with inflation and that Social Security may not be as accessible early on.
“What it looks like they’re gonna possibly do is take it to 64 as the earliest and maybe 72 or 74 at the latest,” he said.
Horvath recommends that people continue to set aside and save as much as possible for retirement, even if it means cutting back on spending while inflation is high.