Inflation had been a problem for a lot of people. The retirees are the ones that have been facing the full force of inflation, though, and it is indeed something that is going to cause more problems in the future too. There have been several people that have been facing the problem as Linehan here.

Rising inflation is a concern for Kevin Linehan, 68, a retiree in Fitchburg, Massachusetts. After a heart attack at age 44, Linehan left his career with the Postal Service early, opting for reduced disability retirement income. “It wasn’t the best financial thing to do,” he said. “But at the time, it seemed like my life was more important than the job.”

Inflation is The Silent Killer

Linehan had noticed a spike in the rise of the necessary items in life and gasoline too. All the foods and necessities are also facing a high rise in price. “It’s like now that we’re getting over [the pandemic] everybody’s jacking prices up,” he said.

The rising food costs have been particularly troubling for Linehan, who receives monthly benefits from the Supplemental Nutrition Assistance Program, known as SNAP. While SNAP benefits grew during the pandemic, he expects it to drop back to $16 per month once the state’s Covid-19 relief runs out.

“I don’t know how much longer, [the extra benefits] are gonna last, but that’s helped me out tremendously,” he said.

“Inflation is the silent killer,” said certified financial planner Brad Lineberger, president of Seaside Wealth Management in Carlsbad, California. “It can erode purchasing power to the point where someone wakes up and can’t live the lifestyle they once did because they can’t afford to.”

Is There Anything You Can Do?

Financial experts advise keeping three to six months’ worth of expenses in cash on hand as an emergency fund, with the upper limit set at six months’ worth of expenses only in the case of significant ongoing liabilities.

Financial experts advise keeping three to six months’ worth of expenses in cash on hand as an emergency fund, with the upper limit set at six months’ worth of expenses only in the case of significant ongoing liabilities.

Bond investments can mitigate portfolio returns but provide safety in volatile stock markets. The stock market has the potential to provide superior returns over the long term. Investors and savers alike should diversify their holdings across multiple funds and asset categories.

Inflation

Conclusion

Improvements in bonds are possible if inflation cools down as predicted later this year. There could be even more potential for bonds if higher interest rates lead the economy to slow.

Even though the 1990s, 2000s, and 2010s were relatively easy, the following decade looks to be much more difficult. Having a proactive manager on your side to help you through these difficult times is, in my opinion, more important than it has ever been.

Inflation is a drain on household budgets everywhere you look. It is generally true that your salary will rise in line with inflation so long as you continue to work. You no longer have that option once you’ve entered retirement.

Thankfully, inflation is taken into consideration when pension plans are developed. Our goal is to ensure that our clients’ retirement income is secure, no matter how long they live in retirement.

We are making concerted efforts to keep inflation under control, so it will not be a stealthy assassin of your retirement savings.