According to Record York Life’s most recent Wealth Watch poll, one-third of American adults used their savings to pay for living expenses during the first half of 2022 as inflation hit a new 40-year high.
36% of respondents claim to have taken an average of $617 out of their funds during that time, with Gen Xers withdrawing the most amount ($644).
Although this confidence has decreased from an average of 69% at the start of the year, 62% of individuals say they are generally confident in their ability to fulfill their financial objectives.
The financial picture for many Americans has changed significantly since the start of the year, and we’re seeing the positive expectations many Americans held about their finances heading into 2022 start to fade,” stated Aaron Ball, senior vice president and in charge of NewYork Life’s insurance solutions, service, and marketing.
“Our research found that macroeconomic factors, including inflation (65%), healthcare costs (34%) and the national economic recovery (32%) are the factors that Americans report as being most impactful to their personal sense of financial security. Three-quarters of those surveyed report that inflation has impacted either short- or long-term financial strategies, and nearly 9 in 10 adults (89%) are concerned about a potential economic recession in the U.S.”
According to the poll, 39% of individuals are cutting back on travel and vacations, 45% are cutting down on eating out and ordering takeout, and 37% are cutting back on event attendance.
Consumer prices increased 9.1% year over year in June, the highest level in more than 40 years and a new epidemic period record.