UM23-12: Inflation and Economic Security of the Older Population
Following a long period when inflation was about 2.5% per year, the year-to-year increase in the consumer price index was recently reported to be about 8%. The older population, being net lenders, is economically vulnerable to high and increasing inflation so that prior analyses of economic security in retirement, based on the long period of low inflation, are likely overly optimistic. This project would analyze the composition of assets in the older population to find how asset values would change with an increase in inflation. Then it would alter a previously developed model to estimate the impact of high and increasing inflation on economic preparation for retirement.