Protect Your Nest Egg: Inflation Busting Retirement Tips

Hi, everyone. Dana Dunkelberger here. Welcome back to Plan on Purpose. Today, we’re tackling a critical topic for our clients and retirees: combating inflation in retirement. Inflation can significantly impact your retirement savings, but with careful planning, we can mitigate its effects. Let’s discuss some strategies. First, consider delaying your Social Security income. Delaying from age 62 to 70 can increase your income by up to 76%. The best time to start collecting depends on several factors: your health and expected longevity, spousal age differences, work plans, and other income sources like pensions and rental income. Additionally, consult a tax advisor for potential tax implications on your Social Security benefits.

Next, let’s address long-term care and overall healthcare costs. A married couple aged 65 may face around $318,000 in healthcare costs during retirement. To combat these expenses, consider a life insurance policy with healthcare and long-term care benefits. These policies offer flexibility and growth, unlike traditional use-it-or-lose-it propositions. While some may dislike life insurance, I advise using the best tool for the task.

Lastly, explore income-adjusted investments or financial products. Treasury Inflation-Protected Securities (TIPS) are one option, with the principal adjusting based on the consumer price index, ensuring you receive the greater amount at maturity. Inflation-adjusted annuities are another choice, providing an income stream that increases over time to keep up with inflation. Remember, while we can’t control inflation, we can plan purposefully to lessen its impact.

Making informed decisions and preparing for retirement is what we love to help you with. Plan on purpose, and we’ll see you next time. Thank you.

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