According to findings from Janus Henderson Investors’ 2022 Retirement Confidence Report, self-directed investors appear to be tightening their budgets amid rising inflation and market volatility. The report found that 86% of survey respondents are concerned or very concerned about inflation and 79% are concerned or very concerned about the stock market. However, despite these concerns, only 13% of investors have moved money out of stocks or bonds and into cash. Instead, almost half of the respondents said they have reduced their spending or plan to reduce spending as a result of the financial markets and rising inflation. The report also noted that women reported greater concern about the stock market than men, but no gender-based difference was found regarding inflation. Another noteworthy finding from the report was that investors still in the workforce were more worried about the stock market and inflation compared to retirees. This can be attributed to the many uncertainties associated with how their household budgets could change in retirement.

Finsum:A recent report found that investors are tightening their budgets, but not moving to cash amid the current rising inflation and market volatility.