The 4 Best Ways to Combat Inflation in Retirement

(don’t forget to checkout the video too)

Inflation is a big concern for people in retirement.

And inflation can significantly erode away your retirement income over time.

It takes about twice as much money at the end of retirement as it does in the beginning to live the same lifestyle.

So inflation is an important element of your retirement plan.

Here are 4 ways to combat inflation in retirement

⭐️ The Stock Market ⭐️

The stock market is a great hedge against inflation because over time the market has an incredible to grow assets, but it takes time.

That’s why it’s so important to have some guaranteed income in your retirement plan so that you are able to invest a bit more aggressively to grow the other element of your portfolio to fight off the negative effects of inflation.

⭐️ Layer on Additional Deferred Income in Retirement ⭐️

Earmarking some of your retirement money for income is a great idea, but you can also turn additional income sources on in a laddered fashion.🪜

This is another great way tool for inflation protection because you are able to leverage the accumulation ability of insurance companies AND their ability to provide you with substantially more income than you can generate yourself.

⭐️ Delay Your Social Security ⭐️

If you don’t immediately need the income from your social security delaying it is one of the BEST hedges against inflation.

Social security grows at about 7–8% per year for each additional year you delay, so you can allow an element of your retirement income to grow and you can turn it on when you need it…

And if you don’t need it, you can MAX it out at age 70 and have another income source to protect your other assets from a potential long-term care event as well.

⭐️ Model Your Income to Reflect Your Spending ⭐️

While retirement costs typically increase over time, your spending typically DECREASES.

So if you plan for an income target that reflects the higher spending habits of the first 10 years of retirement, you will have a good hedge against inflation simply because you will have more income than you need in the second phase of retirement.

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