What To Know About Inflation And Retirement
Today’s topic is one that has been in the headlines for quite some time now. It seems inflation is on everyone’s mind, and rightfully so. Since the pandemic hit and stimulus spending began stacking up, there have been discussions of how these bills could impact retirees and their retirement savings. But how do we cope? We know there is risk that comes with investing in the stock market. We also know there could be fees when money sits in the bank and other accounts. To combat this risk, some people have a “mattress fund” or a coffee can in the backyard to keep their money from going anywhere. But inflation affects every single dollar you save, no matter where it’s invested. So, what's the relationship between inflation and retirement?
Well, inflation is when the value of a currency is falling, and consequently, the cost of goods and services is rising. We have no control over it. However, it has a big impact on our finances, yet people do not think much of it as they prepare for retirement. We are living in very uncertain times, and the government has promised to spend $6 trillion in COVID-19 relief. Whenever the government is spending that much, inflation is likely to rise, which means now is the time to make sure your retirement accounts for inflation. So, today we want to go over the relationship between inflation and retirement and a plan for the possible blow of inflation.
