According to the Associated Press, inflation is at a 40-year high. For retirees on a fixed income, this economic environment could be daunting. So, if you are a retiree or close to retirement, you may be wondering what you can do to combat the rise in inflation.
Jim Ward, Executive VP for Retirement Planners of America, gives his thoughts on some things retirees may be able to do to help with rise of inflation.
“First, they can try to make sure their investments don’t make a bad situation worse. Our clients have been in cash for some time. So, while inflation may still be a concern, their investment balances aren’t subject to additional losses that could keep them from staying on track with their retirement plan. I think retirees can also tighten their belts without compromising quality of life. They can work to compartmentalize their expenses into needs like housing, food and prescription drugs and wants like dinners out, travel, and entertainment. Retirees can also supplement income in a variety of ways including a part-time job taking advantage of this robust job market. They might even be able to accomplish that while working from home,” Ward says.
At RPOA, we believe that your expenses should be prioritized and that you shouldn’t shortchange your necessary expenses, like housing, utilities, and prescriptions. For a little while, many of us may have to make lifestyle sacrifices, but if you continue to make the choices that are right for you and you’ve planned ahead, we believe you should be able to get through it.
Ward also wants retirees to be aware of some areas he believes may be the most vulnerable to inflation such as housing expenses, gasoline and other automobile expenses, groceries, and travel.
If you’d like to get a plan in place, you can meet with one of our retirement planners. Our goal is for your money to last as long as you do. Visit our website to set up a retirement plan consultation.