It’s almost certain that you’ve spent the last few years hearing all about inflation. Some aspects of rising inflation are easy to see. That grocery budget just doesn’t go as far as it used to and many other staple products and services have also seen prices steadily increase. In some better news, the latest numbers¹ show that current inflation rates are on the decline and that the national average is much closer to pre-COVID levels.  

But aside from bills being larger or budgets growing tighter, how does the inflation rate affect your retirement plans?

Interestingly, the same rises in inflation that are evident in everyday prices can also work for you. Depending on the makeup of your portfolio, careful and considered investing can give your money the chance to grow at a rate that paces inflation more closely than simply stashing assets away in a savings account or a low-interest CD. Similarly, it’s important to consider the timing or amount of withdrawals taken when inflation is high. If your withdrawals leave you with excess cash on hand, that’s money that could otherwise be working for you and help maintain your buying power. 

Inflation-related items to consider include²:

• Pension – If you receive or plan to receive a pension, know the details. Depending on the structure of your plan, it may or may not be adjusted for inflation.
• Social Security – Each year, inflation is considered, and benefit amounts are adjusted for recipients.
• Current Situation – Make sure your strategy is aligned with your goals. If retirement is still in the future, more risk in hopes of more growth might be wise. If you are already retired and don’t need added risk, keeping up with inflation may not be as urgent an issue.

Contact Consha Financial at 678-539-9518 and we can help describe some of the ways the markets can affect the plans you have set for your financial future. 

1. https://www.usinflationcalculator.com/inflation/current-inflation-rates/
2. https://www.investopedia.com/articles/retirement/052616/how-inflation-eats-away-your-retirement.asp

Investment advisory products and services made available through Impact Partnership Wealth, LLC (IPW), a Registered Investment Adviser. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. 

9/24-3866167

This blog is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.