Inflation impacts retirees, advice on finances and investments

SAN ANTONIO – Even though inflation is easing somewhat, the cost of living continues to rise at a much higher rate than in recent years, making life particularly difficult for people in retirement or nearing retirement. retirement. Here are some tips on what retirees can do to fight inflation.

With inflation at its highest level in 40 years and interest rates soaring, retirees and those nearing retirement are feeling the pinch.

“Retirement is 25, 30 years on average for people. And we want to make sure that the money we have saved for this period will last,” said C-Net Money editor 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 subscriptions that maybe you took out before retirement, and maybe you forgot about them, or they feel like they’re not making a lot of money each month, but over the course of year, it can cost hundreds of dollars. Consider unplugging them and their apps that can help you do that,” Torabi said.

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If you have a fixed income, you can check how the money you have saved is 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,” Torabi said.

Experts say a trusted financial advisor or family member can help you review your investment plan and withdrawal rate.

With interest rates rising, develop a strategy to pay off any debt you may have.

“So if you have unpaid credit card debt or any kind of personal loans, car loans where the interest rate might adjust higher as the Federal Reserve raises interest rates, give the priority to that because it’s going to cost you a lot of money in that environment,” Torabi said.

As unemployment rates fall and wages rise, Torabi suggested it might be time to think about getting back to work to recoup some of the money inflation is taking.

“If you spend your whole career working and exercising a skill or a talent, you know, maybe there is a way to take advantage of that, to monetize that in retirement through part-time work. So don’t be afraid to get back in the game,” Torabi said.

Copyright 2022 by KSAT – All rights reserved.

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