ORLANDO, Fla. – Americans are spending more than three hundred dollars more every month due to inflation. For those who are retired, that extra costs could be stretching an already tight retirement income.
According to Global Atlantic Financial Group, 61% of retirement age investors believe what’s happening now, could make it harder to live on their retirement savings later. There are things to do now that could help your money last.
You’ve worked your whole life to enjoy the rest of your life and now sky high inflation and a moody market is putting your golden years at risk.
“It’s hit that generation, very deeply because that generation is very conscious and they’re living on fixed income predominantly,” Jeannette Bajalia, a financial planner and president/founder of Woman’s Worth said.
Forbes reports that a person with a million dollars saved for retirement and expects to spend $50,000 a year, with three percent inflation, and a three percent return, that million dollars would last for 20 years. If inflation hits 12%, that one million would run out in less than 12 years.
So, what are people doing?
“They’re compromising. And then they’re shifting healthy lifestyles for maybe not so healthy lifestyles,” Bajalia said.
Experts say it’s better to look at the bigger picture. First, do an in-depth budget analysis.
“Know how much comes in and the net difference,” Bajalia said.
Put any extra in an emergency fund and pull from this first before dipping into retirement funds. Also, check your portfolio and move money from high-risk accounts. Also, experts warn to be frugal when helping family members.
“Women will have a tendency to help their children, help their grandchildren. What happens to many women is they think about others before they think about themselves and then they compromise their financial future.”
Bottom line - don’t risk it. Your financial future may depend on it.
If you are having difficulty making ends meet, re-evaluate your lifestyle costs, re-evaluate what’s important and what isn’t important, and then start scaling back.
The best advice, check in with your financial advisor regularly to see what is best for you.