8 Ways People Who Save for Retirement Can Fight Inflation

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The increasing inflation figures have become a cause of concern among investors across the United States and the stock market. The unprecedented inflation rise may gradually subside, but it will likely last for a while. If you are a retiree with a fixed income, you might be worried that it would affect your retirement plans.

In a recent poll conducted by Global Atlantic Financial Group, 3 out of 5 investors who’ve reached retirement age believed that it would be more challenging to build a lifelong income stream due to low-interest rates and growing inflation. Below are a few things you must know about the impact rising inflation figures have on your retirement plans.

How Inflation Affects Your Retirement

Inflation’s impact on your retirement funds can be scary. Suppose you’ve set aside $1 million for the future and plan to spend $50,000 annually. That $1 million would last 20 years, provided yearly inflation stays at 3 percent and the rate of return remains at 3 percent. However, $1 million would run out in 11 years and 9 months if inflation increased to 12 percent annually.