Retiree spending spiked 10% since the start of the pandemic

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More than a quarter of retirees are spending more than they can afford due to the pressures of inflation, and many do not understand common retirement income strategies, suggesting a need for more financial education and resources from employers and advisors, according to a new survey.

Retirees who say that their spending levels are much higher or a little higher than they can afford reached 27% in the survey of approximately 2,000 American retirees between the ages of 62 and 75 by the Employee Benefit Research Institute, a nonprofit resource organization focused on employee benefit programs in the United States. That is up from 17% in 2000. Meanwhile, approximately 9 out of 10 retirees who have decreased their essential or discretionary spending since the COVID-19 pandemic started say that it is due to their concerns about inflation.