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5 Ways Inflation Affects Your Retirement & 3 Ways to Protect It

5 Ways Inflation Affects Your Retirement & 3 Ways to Protect It

May 08, 2024

If you’re in retirement or strategizing for it, inflation is likely one of the main concerns you’re looking to address and protect against. These five expenses may be the main culprits of a ballooning budget while inflation remains high. 

  • Inflation increases your grocery bill.
  • Housing costs usually rise.
  • Expect to pay more at the gas pump.
  • Travel often becomes more expensive.
  • Healthcare costs increase.

So, what can you do about it?

Revisit Your Investment Strategy. There may be ways in which you can strategize your investment portfolio to increase your income amounts or the income potential so that you have enough to cover your monthly expenses. You may also look for strategies that provide inflation protection by adjusting interest rates or payouts based on inflation levels.

Adjust Your Monthly Expenses. Inflation rarely affects all goods and services in the same way. There may be ways to cut back on the items that inflation is affecting the most. That way, you can effectively reduce the effect inflation has on your wallet without completely changing your lifestyle.

Talk to a Financial Professional for Clarity and Direction. It’s hard to expect to stay on top of inflation data and financial news. In addition, it takes experience and knowledge to wield all the financial tools you have available to you, let alone know about them and how they change each year. A financial professional can take care of the aspects of your financial strategy that require financial expertise, while you can take care of making sure your unique financial situation is accounted for in their guidance. A financial professional could make a great teammate for constructing a comprehensive retirement strategy! Call us today at (704)216-2260.

SOURCE: Yahoo Money