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High Inflation Forces Americans to Dip into Retirement Savings and Accumulate Debt

A new study by Allianz Life reveals that chronic inflation is impeding Americans' ability to prepare for their financial future. Due to rising prices for everyday goods, nearly 70% of respondents have not been able to contribute as much to their savings, and 51% are accruing more credit card debt to pay for necessities. Additionally, nearly 42% of households are dipping into their retirement savings to cope with inflation, which is a concerning sign for long-term financial stability. The study highlights the challenges faced by Americans as they continue to deal with high inflation that erodes their purchasing power, with the burden disproportionately affecting low-income households. As a result, Americans are using up their savings and increasingly relying on credit cards for basic expenses, with credit card debt reaching a record high. Despite a slight decrease in concerns, 68% of Americans still expect inflation to worsen over the next 12 months. Read More. 

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Is Homeownership Still Within Reach for America's Middle Class in 2024?

The middle class in America is struggling to maintain its standard of living due to the highest inflation breakout in nearly 50 years. According to a study by Creditnews Research, many middle-class families have been priced out of homeownership, which was once a pillar of the American Dream. The study analyzed income distribution and housing costs across the 100 most populous metropolitan areas in the United States and found a stark divide between areas where middle-class families can still afford an average home and those where they've been priced out entirely.

Key findings include:

• In 2024, the middle class can afford an average home in only 52 of the top 100 metro areas, a decline from 91 in 2019.

• The lower-middle class is priced out of 93 of the top 100 metro areas, up from just 33 in 2019.

• The most affordable metros for middle-class families are mainly located in the Midwest, Rust Belt, and parts of Texas, with Youngstown, OH; Toledo, OH; McAllen, TX; Scranton, PA; and Wichita, KS being the most affordable in 2024.

• The most unaffordable metros for the middle class are concentrated in California and the Tri-State Area, including San Jose, CA; San Francisco, CA; Los Angeles, CA; San Diego, CA; and Honolulu, HI.

• The affordability crisis is exacerbated by a historic housing supply shortage and a generational spike in mortgage rates.

The study highlights the growing challenge of homeownership for the middle class and suggests that without significant changes, housing is unlikely to become more attainable in the near future. Read Now.