5 Ways to Combat the Impact of Inflation on Your Retirement Plan

5 Ways to Combat the Impact of Inflation on Your Retirement Plan

As high inflation persists, so do retirees and workers who are a few years away from retirement. A survey found that inflation is America’s biggest problem, and concern about it is acute among those 50 and older. Another survey found that four out of five Americans in this age bracket express discomfort with inflation in retirement, with 84% of pre-retirees feeling this way compared to 76% of retirees.

No wonder. The summer of 2022 has been white-hot with inflation rising 8.3% year-over-year in August, prompting another significant interest rate hike by the Federal Reserve . Inflation reduces purchasing power and can be particularly problematic for retirees who live on fixed incomes and savings. For those in the later stages of their professional career, inflation may reduce the amount they have saved for retirement. Meanwhile, a volatile stock market is heightening the worries of pre-retirees and retirees, causing them to reconsider certain investments and wonder if they will outlive their nest egg.


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