Inflation Stresses Pre-Retirees More than Retirees, per SOA

Pre-retirees are feeling the effects of inflation more acutely than retirees, with longer planning horizons and greater uncertainty driving heightened concern and action, according to the Society of Actuaries’ recent analysis of its biennial Retirement Risk Survey findings. The latest data collected in September 2024 found that pre-retirees across all income levels showed higher levels of concern for inflation than retirees. According to the U.S. Bureau of Labor, the Consumer Price Index rose 2.4% in the 12 months ending in September 2024, compared with a 3.8% increase in the 12 months ending in April 2026, which was impacted by rising gas prices and the U.S. conflict with Iran.

The biggest gap of concern in the study was between high-income pre-retirees and retirees—at least $100,000 for pre-retirees and at least $75,000 for retirees—with 72% of pre-retirees sharing concern, compared with 56% of retirees.

Among middle-income pre-retirees making between $50,000 to $100,000, 80% were somewhat or very concerned for inflation at the time, compared with 72% of middle-income retirees making between $35,000 and $75,000 in retirement.

Steve Siegel, research actuary at the Society of Actuaries, says pre-retirees have higher concerns over inflation because they have to deal with the economic impact for longer.

“Pre-retirees are feeling increased financial strain … and are a lot more concerned about economic issues and big, disruptive events, compared to retirees who [are] generally … better able to adjust when they had to tighten their finances,” Siegel says. “Once you get to retirement, there’s a sort of settling in with what your situation is, but when you’re a pre-retiree, there’s a lot more unknown.”

The survey highlighted a sharp divide in how households responded to inflation, depending on income level. Lower-income pre-retirees were significantly more likely to take immediate action, including finding new sources of income. More than half reported taking on additional work or seeking another job, compared with about 30% of higher-income respondents.

Higher-income households, meanwhile, were more likely to adjust long-term strategies, with 40% of higher-income pre-retirees reporting changing their investments, compared with roughly 15% in the lowest income bracket.

Looking ahead, many pre-retirees expected to stay actively engaged in managing inflation’s impact. Roughly two-thirds said they planned to monitor budgets, reduce spending or adjust investments if inflation persisted. About 40% said they planned to seek professional financial advice, compared with roughly one-third of retirees.

The data suggests inflation may nudge more individuals toward financial professionals, though it remains a secondary response behind immediate budget adjustments.

While the SOA does not prescribe specific strategies for advisers, the findings point to a need for more comprehensive and personalized planning approaches, according to Siegel. That includes explicitly accounting for inflation, whether through higher everyday costs or more scenario-based planning tied to clients’ goals.

“It’s always important to envision retirement as completely as you can,” Siegel says. “For advisers, looking for new ways to help people manage these events, think about them, especially for people who don’t have assets to weather storms … I think that’s a big takeaway.”

Deloitte Consulting LLP and Dynata conducted the online survey on behalf of the SOA, polling 2,012 respondents, including 1,007 pre-retirees and 1,005 retirees between ages 45 and 80.