Will Inflation Eat Away Your Retirement Savings? What Every Retiree Must Know

Understanding the Impact of Inflation on Retirement Savings

Inflation has become one of the most pressing concerns for today’s retirees. Rising prices on essentials—like food, housing, and healthcare—mean your retirement income may not stretch as far as it once did. For retirees living on a fixed income, even modest inflation can have a dramatic effect on purchasing power over time.

As fiduciary financial advisors emphasize, ignoring inflation is not an option. Retirement plans must be built with strategies that protect against its erosion.

Why Inflation Is a Threat Retirees Can’t Ignore

Inflation impacts retirees differently than those still working. While employees may see wages increase over time, retirees typically rely on savings, pensions, or Social Security—sources of income that often don’t keep up with inflation.

Here are three key challenges inflation creates for retirees:

• Erosion of purchasing power: Your money simply buys less year after year.
• Rising healthcare costs: Medical expenses historically outpace general inflation, creating a double burden.
• Increased longevity risk: With retirees living longer, inflation compounds over decades, not just years.

Strategies Fiduciary Advisors Recommend to Protect Retirement Income

A fiduciary financial advisor, who is legally obligated to put your best interests first, will often recommend proactive strategies to help offset inflation risks:

1. Diversified Investment Portfolios

Equities, dividend-paying stocks, and inflation-protected securities (like TIPS) can help provide growth potential that outpaces inflation.

2. Income Planning with Flexibility

Instead of relying solely on the 4% withdrawal rule, advisors may recommend a more dynamic approach that adjusts withdrawals based on market and inflation conditions.

3. Social Security Optimization

Delaying Social Security benefits can increase monthly payments, which are adjusted for inflation through Cost-of-Living Adjustments (COLAs).

4. Healthcare and Long-Term Care Planning

Building in higher-than-average growth assumptions for healthcare ensures you’re not caught off guard by rising medical costs.

What Retirees Must Do Now

Every retiree should ask: Is my retirement plan inflation-proof?

Here’s what fiduciary advisors encourage retirees to do today:

• Review your income streams to identify which are inflation-adjusted.
• Revisit withdrawal strategies with your financial advisor to ensure sustainability.
• Stress-test your plan with inflation scenarios (e.g., 3%, 5%, or higher).
• Consider working with a fiduciary advisor who can provide unbiased, personalized guidance.

Final Thoughts

Inflation may be a silent risk, but with the right planning, it doesn’t have to derail your retirement. By working with a fiduciary financial advisor and building strategies designed to protect against rising costs, retirees can maintain financial peace of mind—even in uncertain times.

Global View Capital Management (GVCM) is an affiliate of Global View Capital Advisors (GVCA). GVCM is a SEC Registered Investment Advisory firm headquartered at N14W23833 Stone Ridge Drive, Suite 350, Waukesha, WI 53188-1126. 262.650.1030. Ryan Peca is an Investment Adviser Representative (“Adviser”) with GVCM. Additional information can be found at www.adviserinfo.sec.gov Global View Capital Insurance Services (GVCI) is an affiliate of Global View Capital Advisors (GVCA). GVCI services offered through Experior Financial Group, ASH Brokerage, and/or PKS Financial. GVCI is headquartered at N14W23833 Stone Ridge Drive, Suite 350, Waukesha, WI 53188-1126. 262-650-1030. Ryan Peca is an Insurance Agent of GVCI.