Inflation and Retirement: Five Ways to Soothe Your Worries

Sometimes you can deal with inflation and economic turbulence by not doing anything at all, but there are considerations for retirement savers to keep in mind.

A man looks worried as he clasps his hands in front of his chin.
(Image credit: Getty Images)

Last year, we witnessed a significant year-over-year increase in CPI inflation, reaching a high of 9.1% in June — the highest in four decades. Since then, we have observed a consistent decline in inflation for the past 12 months. Although it’s improving, inflation remains a common phenomenon in most economies. That it’s prevalent — even expected — doesn’t necessarily negate the anxiety it causes on an individual level.

Whether you are a meticulous planner or have hired one to support your financial journey, you’ve likely strategized how best to prepare for your retirement. What that strategy looks like depends on many factors, including those personal to you and broader, macroeconomic forces like inflation. When planning for something like a possible inflationary period, there are times when the best advice may be to stay the course, as chasing performance could lead to trouble. Sometimes, you can fight inflation by not moving at all.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Michael J. Faust, CFA
President, Wealth Management, Bailard

Michael oversees the activities and personnel of the Wealth Management Group at Bailard. Mike has been in the investment industry for 26 years; 21 of which have been with Bailard. Michael is also responsible for developing and implementing investment policies for individual clients and for maintaining client relationships.