Great Lakes Wire

In its quarterly BMO Real Financial Progress Index, which is designed to capture Americans' current financial sentiment, BMO Harris Bank says that inflation and rising costs could put retirement plans on hold for up to a quarter of Michigan residents. 

Paul Dilda, Head of Consumer Strategy for BMO Harris, said, "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 Michiganders will need to delay their retirement."

Inflation is significantly impacting almost every segment of the population, but the results are especially harmful for those aged 18-34, who currently make up 20.9% of Michigan's population. Over 60% of respondents in this age group said that inflation has had a significant impact on their personal finances. Of those, 1 in 4 said that they have felt a major impact. 

As for the general population, 36% of Americans indicated that they have reduced contributions to their savings. Additionally, 21% reduced contributions to their retirement accounts.

Other studies have observed similar results. According to the Wall Street Journal, a survey conducted with NORC at the University of Chicago showed that up to 83% of Americans would use "poor" or "not so good" to describe the state of the economy. Additionally, 35% said they are not satisfied with their current financial situation. This is reported to be the highest level of dissatisfaction since 1972, when the survey began. 

These factors are sure to impact the re-election chances of President Joe Biden. Inflation has shown to rise every month since Biden took office in January of last year.