When you retire, you hope that you’ll be able to anticipate the events that could cause you financial challenges down the road. For one thing, most retirees are probably aware that, even if they remain healthy, their health care costs may rise, even if they’re covered by Medicare or Medicare Advantage. But there’s another potential risk that can sneak up on retirees: inflation.
However, once they reach retirement, retirees are all too aware of the effects of rising prices. In fact, 63% of retirees think the biggest financial shock in retirement is inflation and the rising cost of living, according to a recent survey by Age Wave and Edward Jones.
As you know, we have experienced mild inflation for some time, up until the past couple of years. But even when inflation subsides again, it can still be a threat to your retirement security. A 3% annual inflation rate can double your cost of living in about 25 years. What can you do to help alleviate the shock of inflation?
