SAN ANTONIO – Although inflation may be slowing down somewhat, the cost of living is still increasing at a much higher rate than in recent years, making it especially hard on people in retirement or nearing retirement. Here are some tips for what retirees can do to help deal with inflation.
As inflation is at a 40-year-high and interest rates are soaring, retirees and those near retirement are feeling the pinch.
“Retirement is 25, 30 years on average for people. And we want to make sure that the money that we have saved for that time frame is going to last,” said C-Net Money Editor-at-Large Farnoosh Torabi.
Torabi said there are things retirees can do to fight inflation, starting with looking for ways to cut expenses, like subscriptions.
“If you have some subscriptions that maybe you took on pre-retirement, and maybe you forgot about them, or they feel like they’re not a lot of money every month, but over the year, it can be hundreds of dollars. Consider unplugging them and their apps out there that can help you do that,” said Torabi.
If you’re on a fixed income, you can check how the money you’ve saved is being invested.
“One thing to keep in mind is that just because you’re retired doesn’t mean you have to stop investing for your retirement again,” said Torabi.
Experts say a financial advisor or trusted family member can help look at your investment plan and your withdrawal rate.
With interest rates rising, strategize how to pay off any debt you may have.
“So if you do have outstanding credit card debt or any sort of personal loans, car loans where the interest rate could adjust higher as the federal reserve raises interest rates, prioritize that because that’s going to cost you a lot of money in this environment,” said Torabi.
As unemployment rates low and wages rise, Torabi suggested it might be time to think about going back to work to recover some of the money that inflation is taking.
“If you spend your entire career working and exercising a skill or talent, you know, maybe there’s a way to still leverage that, to monetize that in retirement through part-time work. So don’t be afraid to get back in the game,” said Torabi.