Impact of Inflation on Your RetirementEvery time you go shopping, it seems like prices have gone up — from groceries to gas and everything in-between. Over the past 10 years, inflation has averaged about 1.8% per year, but this year, inflation has reached a crippling 5.5%. It’s hard enough for working families, so how do you cope with skyrocketing inflation when you’re retired? Inflation is a factor that many people don’t consider when thinking about their retirement but is very important when planning for retirement inflation.
Living on a fixed income, such as Social Security isn’t easy during the best of times. While Social Security recipients will see a 6% monthly increase starting in January 2022, they will also be paying 14% more for Medicare Part B. With interest rates the way they are right now, it’s tough to make a fixed income grow. So, how do you protect your retirement income when inflation hits?
The answer is … proper planning. Regardless of your source of retirement funds, you need to make sure that you have enough to live on — for the long term — when you leave the workforce for good. You don’t want to be in a situation where your run out of money because your retirement funds succumbed to inflation.
That is where Safe Harbor comes in. Contact us to schedule a complimentary, no-obligation consultation. We will review your situation and put together income projections for the next 5 and 10 years and beyond, accounting for inflation in retirement. We can recommend income planning products and services to help your money grow and make sure your retirement money will withstand inflation. Call us today at 614-760-0670 or visit our website at SafeHarborOH.com.