Supply chain problems and inflation are taking their toll on employers and their retirement accounts.
Inflation tops employers' list of concerns, according to a TD Wealth survey of more than 700 employers with $100,000 in assets and more than one employee. Second is economic uncertainty.
Read the latest inflation report
This fear is driving some employers to change their retirement plans. Nearly two-thirds of those surveyed said they changed their retirement plans in the past year, nearly a third said they changed their asset allocation, another three in 10 said they had postponed retirement, and the same number of respondents said they had announced a reduction in their retirement plans. contributions. your retirement savings.
Worry is not artificial. Inflation hit a 40-year high last year, and supply chain woes have led to shortages of everything from formula to garage doors.
See: Supply chain issues are the new normal: Here are some ways companies are tackling the problem
Young entrepreneurs are more prone to change. Half of business owners age 55 and older say they have changed their retirement plans, compared to 70% of homeowners ages 18-34 and 74% of homeowners ages 35-54 . The majority of these respondents, 90%, said they still believe their savings will be enough to live on in the future.
Read: People who work at small businesses now have a better chance of retiring
The majority of respondents in this survey (82%) who work with financial advisors and are investors are more confident in their retirement goals than people who do not work with advisors (but somewhat more confident: 83%) when working with a adviser. according to up to 75% of people without a consultant). These finance professionals are likely to suggest new ways to save for the future, including options to invest in retirement portfolios such as digital assets and ESG funds.
Investors are better off when they have a plan for their money and retirement, said James Beam, senior vice president and head of investment management, brokerage, planning and strategy at TD Wealth. "Without a plan or judgement, it's hard to determine where you are," he says.