Peach Tree Times

Rising inflation and cost of living expenses have had severe impacts on the savings capabilities of Georgia residents, a new index finds. 

In its quarterly BMO Real Financial Progress Index, which is an index that is designed to measure Americans' sentiment surrounding financial confidence, it was found that up to a quarter of Georgians may need to delay retirement to compensate for missed savings opportunities as a result of 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 Georgians will need to delay their 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,"

According to the index, the most affected group seems to be those aged 18-34, of which 60% say that they had to reduce contributions to their savings as a result of inflation. This age group makes up 21.14% of Georgia's population, which means that up to a quarter of Georgians may need to delay their retirement due to economic conditions. 

Overall, 60% of those surveyed say that inflation has adversely affected their personal finances. Of those, 1 in 4 say that they have felt a major impact. In total, 36% of Americans say they have reduced their savings and 21% say they have reduced retirement contributions. 

According to the Wall Street Journal, a survey conducted with NORC at the University of Chicago showed that 83% of Americans would use the words "poor" or "not so good" to describe the current state of the economy. 

The Biden administration is scrambling to fix inflation, but so far nothing has made any meaningful impact. Data shows that inflation has risen every month since Biden was elected in January of last year.