Inflation is the enemy of retirement savings. No matter how much money you have stashed, rising prices can erode the value of those dollars. There are many things that nest eggs can do to protect themselves from consumer price spikes. Moreover, you can even use their high cost to your advantage.
‘Higher inflation has some advantages,’ said founder David Edmisten Financial planning for the next phase in Prescott, Arizona. “Wise retirees can adjust their financial plans to give them more confidence in their retirement.”
Edmisten is one of many financial advisors who guide clients through the storm of skyrocketing commodity costs, from groceries to furniture. It is not clear when this storm will end. According to one general indicator, the year-on-year increase in the consumer price index, inflation drop down 7 consecutive months. Meanwhile, the number that the measure landed in – the most recent reading of 6.4% in January – is still one of the highest since the early 1980s. Even as inflation slows, prices remain stubbornly high, with many goods and services priced well above official prices.
It is natural for customers to be worried. According to one survey, more than 70% of Americans over the age of 50 worry that inflation will cause “serious difficulties” in the golden age. investigation By Kiplinger, a business publisher. And his 40% of US workers have already postponed retirement due to the rising cost of living. study Discovered by the National Retirement Association.
But for those nervous investors, wealth managers across the country have a simple message. Don’t panic. Whether it’s investing in bonds, opening a high-yield savings account, making the most of Social Security, or simply saving money, there are many tools retirees and those nearing retirement can use to fend off inflation’s fury. .
“As individual citizens, we don’t have much control over inflation,” he said. Rooted Profit Financial Planning in Holladay, Utah. “However, we can control how we spend our hard-earned money.”
Here are our advisor’s tips on how to regain that control: