IF RETIREMENT IS A PARTY, inflation is the unwelcome guest who eats most of your food, drinks your best wine and makes you question whether throwing the party was such a good idea.
Two-thirds of seniors are concerned that inflation will have a negative impact on their retirement, according to a survey by American Advisors Group, a provider of reverse mortgages. More than half said the cost of living in retirement has been higher than they expected.
The concerns are understandable, particularly because it looks like inflation won’t end anytime soon. Kiplinger forecasts that inflation will end the year at 6.5%, primarily due to higher food and energy prices.
Inflation erodes the value of retirees’ savings, increasing the risk that they’ll run out of money. There are, however, steps you can take to protect your retirement portfolio and blunt the damage inflicted by rising costs:
Delay filing for Social Security. When inflation is rising, delaying benefits is even more advantageous because cost-of-living adjustments for Social Security benefits start at age 62, even if you don’t claim them. Retirees who can afford to postpone filing for benefits until age 70 will also receive an annual 8% delayed-retirement benefit. “It’s the only place anybody can get a guaranteed 8% return,” says Tim Doehrmann, a certified financial planner with Eagle Ridge Wealth Advisors in Washington, Ill.
Bu hikaye Kiplinger's Personal Finance dergisinin May 2022 sayısından alınmıştır.
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Bu hikaye Kiplinger's Personal Finance dergisinin May 2022 sayısından alınmıştır.
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