Above-average inflation and volatile markets have heightened workers' worries about their retirement readiness, according to a survey released Oct. 17 by MFS Investment Management.
Just 34% of the 1,000 workers surveyed said they were confident that they will be able to retire at the age they want, down from 38% last year and 49% in 2021, the survey found.
More than six in 10 workers (61%) reported that increased inflation caused them to adopt more conservative investment strategies.
While moving to more conservative strategies is probably a great move for someone approaching retirement, it can be unwise for just about anyone else, said Jeri Savage, retirement lead strategist at MFS Investment Management, in an email.
For anyone not approaching retirement, "the adoption of more conservative investment strategies due to the influence of market events can be bad thing," Savage said. "Participants should not be market timers."
Concerns over inflation also altered workers' views of what their retirement would look like. Almost 2 in 3 respondents, 63%, reported that their retirement will not mean an end to working but rather a transition to reduced hours or a different job.
The survey — conducted online between March 22 and April 6 — reflects responses from 1,000 U.S. adults working at least part-time and actively participating in a workplace retirement plan. It is part of a global survey of 4,000 workers in the U.S., U.K., Australia and Canada.
