With the rising prices we are currently seeing, you might be wondering if this will impact your retirement. Over time, inflation decreases the purchasing power of what you have put into your savings. If supply chain and consumer spending issues do not get resolved, we could see an even greater increase in inflation and potentially even long-term inflation.
Preparing for this is key to maintaining your retirement plan, so make sure to be watching and adjusting your plan as needed. There are a couple of things you should consider while planning for retirement to get the most out of your money in preparation for inflation.
For help navigating this situation, come talk to us at PR Wealth.
Delay Retirement for Social Security
Many of us have been dreaming of an early retirement however if you are looking to get the most out of your money and want to make sure it lasts throughout your retirement, it is best to delay it. If you wait until your full retirement age for Social Security, you will receive all your Social Security benefits. This age is typically 67, but if you can't wait that long, try to wait until 65 when Medicare kicks in. By continuing to work longer you can also get the perk of lower health costs, which are often affected by inflation.
Reevaluate Post-Retirement Plans
The cost of many things that may be in your post-retirement plan are increasing, such as houses and travel. Consider adjusting your plan to either ease into some of these larger purchases or start planning out the costs and how to manage them with your financial advisor sooner rather than later.
Questions to consider:
Is now the right time to sell this property?
How can I get the most value for my money?
Look at Your Portfolio
Meet with your financial advisor to discuss your portfolio to ensure your investments are appropriate given your situation and how close you are to your desired retirement age.
There are certain investments that are best for portfolios trying to counteract inflation. As you get closer to retirement, start looking to diversify your portfolio. You should also consider moving into safer assets such as fixed income.
The best thing to do to truly help protect and plan for the impact of inflation on your retirement plan is to discuss it with a financial advisor. So, if you have concerns about your retirement plan, come talk to our experts here at PR Wealth.