"No Money Even for Immediate Living Expenses"... Middle-Aged Canadians Unable to Retire Amid 'Worst Inflation'

Rising Prices and Interest Rates Increase Living and Debt Burdens... 63% Say "Must Keep Working"
Retired Workers in the US Also Increasingly Returning to Jobs

Due to soaring inflation, middle-aged and older adults in North America are postponing retirement or returning to work after retirement. Photo by Pixabay

[Asia Economy Intern Reporter Kim Se-eun] Due to soaring prices and interest rates, middle-aged workers in North America, including the United States and Canada, are postponing their retirement.

According to a survey jointly conducted on the 17th (local time) by financial institutions Brownwich+ Smith and AdvisorSavvy, 63% of 1,519 Canadians aged 55 and older responded that they plan to delay retirement.

Respondents cited reasons for postponing retirement as the burden of living expenses due to soaring prices and interest rates (54%, multiple responses allowed), excessive debt (40%), and supporting children (26%).

Seventy-one percent of respondents worried that "money will run out after retirement," and 63% said they "will have to keep working."

A survey official explained, "All Canadians are exhausted from the pandemic and economic difficulties," adding, "Those approaching retirement age want to retire, but the reality is that bank balances and savings are decreasing amid soaring prices."

The U.S. labor market is also affected by high inflation.

Recently, The Wall Street Journal (WSJ) reported that retirees facing tight living expenses due to rising prices are returning to the labor market.

The media cited U.S. Department of Labor statistics, stating that the proportion of Americans aged 55 and older who are working or have found jobs increased from 38.4% last October to 38.9% this March.

Joseph Brusuelas, chief economist at accounting and tax consulting firm RSM US LLP, explained, "The inflation shock has driven behavioral changes in the labor market," adding, "Middle-aged people who expected to live on fixed income in a low-interest, low-inflation environment now have to return to the labor market."

Meanwhile, the U.S. Federal Reserve recently implemented a 'giant step' by raising the benchmark interest rate by 0.75 percentage points at once to curb soaring prices, as the Consumer Price Index (CPI) hit 8.6%, the highest in 41 years.

This content was produced with the assistance of AI translation services.