Six Points to Consider
- Inflation is the silent killer of cash flow! Your money will never be worth more than it is today.
- Your personal inflation rate, depending on how you intend to use your money, may be different from the average national rate. Hopefully our research will help you determine. you own inflation rate and help you calibrate your retirement strategies.
- Social Security’s “Cost Of Living Adjustment” (COLA) is a good indicator of expected inflation. Per ssa.gov/cola, the government has declared a COLA in January 2022 of 5.9%. The Social Security tends to understate these increases and typically works with conservative amounts. Actual inflation is expected to trend higher than this COLA adjustment.
- It is important to factor inflation into your retirement planning and be realistic on the percentage!
- Inflation has more impact on some people than others. Before retirement individuals may not feel concerned about inflation because they expect to continuously increase their income as the years pass. Once you are retired however, that may no longer be possible.
- Don’t panic but take the time to plan!
Recommendation: Secure an advisor, understand these concepts, and let him or her guide you to a worry free and successful retirement!
First Benefits Group Inc is neither a legal nor accounting firm, and does not render legal, accounting, or tax advice.
You should contact an attorney or CPA if you wish to receive legal, accounting, or tax advice.