Grand Canyon Times

The price of common goods has been rising at the fastest it's been since the 1980s, and 25% of Arizonans may need to retire later than expected.

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 Arizonans will need to delay their retirement.

"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," BMO Harris Bank said in a news release.

According to a recent news release from BMO Harris Bank, last month's BMO Real Financial Progress Index found that younger Americans are reportedly feeling the most impact from the nation's inflation problem. Over 60% of those aged 18-34 said they had to reduce contributions to their savings. Thus, BMO says 25% of Americans will need to delay their retirement.

Nearly 60% of those surveyed said that inflation has adversely affected their personal finances, of which about 1 in 4 said that they have felt a major impact. As a result of inflation, 36% of all Americans indicated they have reduced their savings and 21% said they have reduced their retirement savings.

The BMO Real Financial Progress Index is a quarterly survey conducted by BMO and Ipsos that measures Americans' sentiment around financial confidence, the site says. The survey was conducted from March 30 to April 25, 2022.

21.4% of Arizona's population falls in the 18-34 age range that has been affected the most by inflation and rising costs.

According to the Wall Street Journal, a Journal survey conducted with NORC at the University of Chicago revealed that 83% of Americans describe the state of the economy as poor or not so good. Additionally, more than one-third, or 35%, of respondents said they aren't satisfied at all with their financial situation. The WSJ reported that to be the highest level of dissatisfaction since NORC began asking the question every few years since 1972.

Data shows that inflation has risen every month since Biden entered office in January 2021, NBC News reports. Consumer confidence has also largely been on a downward trajectory since the president took office, according to the University of Michigan Consumer Sentiment Index.