Will inflation impact my retirement? Inflation means fluctuations to the dollar’s purchasing power may have a significant effect on a retiree’s ability to cover costs of living and maintain a quality of life, says Kiplinger’s recent article entitled “Is Inflation Costing You More as a Retiree?”
The recent rise of inflation forces a lot of retirees to address tough questions about how to protect their retirement savings, while covering their costs of living.
Retirees frequently use savings to get them through retirement. However, when inflation happens, the purchasing power of savings declines. As a result, retirees must withdraw larger amounts of savings to cover the costs of living. This shrinks the lifespan of retirement savings.
Retirees and their savings face a stormy forecast ahead due to inflation. Income sources for retirees are largely inflation-exposed, and their spending habits tend to be on products and services affected by inflation. Estate planning and wealth management is especially important during our current economy. Book a call with Vick Law, P.C., an experienced estate planning firm, today to create a plan that best serves your families estate planning needs.
Reference: Kiplinger (July 16, 2022) “Is Inflation Costing You More as a Retiree?”