Will Inflation Derail Your Retirement? 5 Tips to Keep Your Plan on Track
Food prices are on the upswing, seeing their largest annual increase in over 40 years. The cost of housing, gasoline and other goods rose almost 9% over the past year. The current rate of inflation is 8.6% — the highest it’s been since 1981.
We’re living in uncertain economic times. And for those nearing retirement and life on a fixed income, the outlook may be unsettling.
Combating rising costs of living
Many older Americans are looking for new ways to make ends meet. If this isn’t the retirement you’ve envisioned, you’re not alone. The good news is there are steps you can take to better cope with inflation:
- Work longer. Even just one additional year in the workforce can increase your savings. You can continue making contributions to your retirement account, while enjoying a steady paycheck to cover your regular expenses.
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- Delay Social Security. Social Security benefits are adjusted to account for inflation, increasing 5.9% this year to help keep up with the rising cost of living. And the longer you hold off on claiming these benefits, the more you’ll receive.
- Rethink your investments. With interest rates rising and stocks taking a nosedive, it’s a good time to review your investment allocations and speak with a financial advisor about any potential changes. You may also want to ensure that your short-term accounts, like a checking account, have enough funds to pay for your daily expenses.
- Tighten your belt. No, not literally. Instead of withdrawing more money from investment accounts to cover expenses, make your funds stretch farther. Devise a new budget and stick to it, even if it means going without some extras for the time being.
- Consider a reverse mortgage loan. Are you living in your forever home? A reverse mortgage can be a valuable financial tool for older homeowners, allowing you to leverage your equity you've built up over the years, as you continue to live in and own your home. Best of all, there are no †monthly payments. You pay as little or as much as you want, when you want. And because it’s a non-recourse loan, you won’t owe more than your property is worth at the time the loan is repaid. The loan specialists at Reverse Mortgage Funding, LLC (RMF) can help you determine if this is a smart financial option for you.
Live the retirement you deserve
Despite the current rate of inflation, a recent retirement survey revealed that the majority of retirees are hopeful that a comfortable retirement is within their reach. Protect your wealth and use the resources you have available to create and maintain the retirement lifestyle you’ve worked so hard to achieve.
This content is sponsored by RMF, one of the nation’s leading reverse mortgage lenders. We are dedicated to helping older Americans retire more freely, in the comfort of their own homes. As a result of our commitment to providing an extraordinary and positive customer experience, we have earned a 98% customer satisfaction rating; a 4.5-star / Excellent score on Trustpilot; 4.8 out of 5 stars on LendingTree; and an A+ rating with the Better Business Bureau. Call 888-277-1567 to speak with a licensed reverse mortgage specialist to learn about our retirement financing products and solutions.
†Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages. In certain states, RMF’s EE loan provides a fixed-rate term payment option.