Inflation's Dramatic Return Infographic

September 30, 2022

Stay on top of inflation. Read these important facts to help you navigate today's historically high prices.

Inflation is here, and it's putting pressure on us in a variety of ways. Over the past 12 months, we've seen the impacts at the gas pump and beyond.

Chart depicting Consumer-price index, 12-month changes. All items (average 12-month change across all categories). Chart range 0 percent up to 40 percent. Category 1: Gasoline (Energy) between 30 and 40 percent, Category 2: Airline fares (Services) between 20 and 30 percent, Category 3: Used cars and trucks (Goods) 20 percent, Category 4: Fats and oils (Food) between 10 and 20 percent.

Nearly two thirds of retirees beleive today's inflation will last into 2023 or beyond

And, if past experience tells us anything, inflation may be here to stay for a while.

See the bigger picture

High prices are certainly concerning. But new research shows a large portion of retirees could be overlooking the potential long-term impact of inflation on interest rates, and in turn, their investment portfolios.^*

87 percent of retirees at least somewhat concerned about the impact of inflation on prices. 60 percent of retirees at least somewhat concerned about the impact of inflation on interest rates.

8 in 10 retirees indicated "maintaining or growing savings" was imporatnt to them. Nearly half cited "keep money in savings" as one of their top three investment choices.

And while many retirees report that maintaining or growing their nest eggs through stock investments is a priority during this time, curiously, nearly half of them report keeping money in a savings account is one of their top three investment choices, although it will fall short of inflation.

This year, the Social Security Administration raised benefits by 5.9%, the largest such increase in 40 years.²Yet, the increase for retirees still falls short of the 8.5% 2022 inflation rate.³

more than 2.5 percent gap 2022 social security benefit increase compared to 2022 inflation rate.

Take the next step

The majority of adults who work with a financial professional report feeling "very financially secure."⁴

Stay on top of inflation.

Call your financial professional today to create a retirement plan that can help you pursue a financial future with confidence. Download our Inflation's Dramatic Return Infographic.

^*Jackson's Q1 Content Study, Inflation Perspectives, conducted in partnership with Advanis, surveyed 360 retirees between the ages of 60 and 80 who were retired at least three years and had financial assets of $250,000 or more. Data collected online between Feb. 14 and March 9, 2022.

1. Gabrial T. Rubin, Wall Street Journey, "Grocery, Airfare Inflation Reached Historic Highs in April; Gas Prices Eased," May 11, 2022.

2. Lorie Konish, CNBC, "Record-high Inflation Could Mean a Bigger Social Security Cost-of-Living Adjustment in 2023," April, 12, 2022.

3. U.S. Bureau of Labor Statistics, "TED: The Economics Daily," April, 18, 2022.

4. Northwestern Mutual, "92% of Americans Say Nothing Makes Them Happier Or More Confident Than When Their Finances Are in Order," July 22, 2019.

Jackson, its distributors, and their respective representatives do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used and cannot be used for the purpose of avoiding U.S. federal, state, or local tax penalties. Tax laws are complicated and subject to change. Tax results may depend on each taxpayer’s individual set of facts and circumstances. You should rely on your own independent advisors as to any tax, accounting, or legal statements made herein.

Jackson^® is the marketing name for Jackson Financial Inc., Jackson National Life Insurance Company^® (Home Office: Lansing, Michigan), and Jackson National Life Insurance Company of New York^®(Home Office: Purchase, New York).