One-third of U.S. adults tapped into their savings to cover living expenses during the first six months of 2022 as inflation reached a new 40-year-high, according to New York Life's latest Wealth Watch survey.
A total of 36% of people say they have withdrawn an average of $617 from their savings during that time frame, with Gen Xers taking the most ($644).
Still, 62% of adults report overall confidence in their ability to meet their financial goals, down from an average of 69% at the beginning of the year.
"The financial picture for many Americans has changed significantly since the start of the year, and we're seeing the positive expectations many Americans held about their finances heading into 2022 start to fade," said Aaron Ball, senior vice president, head of Insurance Solutions, Service and Marketing at New York Life.
"Our research found that macroeconomic factors, including inflation (65%), healthcare costs (34%) and the national economic recovery (32%) are the factors that Americans report as being most impactful to their personal sense of financial security. Three-quarters of those surveyed report that inflation has impacted either short- or long-term financial strategies, and nearly 9 in 10 adults (89%) are concerned about a potential economic recession in the U.S."
The survey also found that nearly half of adults (45%) are reducing dining out and ordering from restaurants, 39% are reducing travel and vacations and 37% are reducing event attendance.
Inflation surged to a new pandemic-era peak in June, with consumer prices rising 9.1% year-over-year, the highest level in more than 40 years.
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