Freda Robinson, 65, lives a frugal life.
She uses coupons, compares weekly grocery store ads and hunts for the best deals.
But rising inflation worries Robinson, a South Carolina resident who retired from her job in May 2018.
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Shes concerned that her nest egg wont last as prices on everyday items continue to rise.
Inflation is higher than its been since the 1980s.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
While Social Security does increase annually for inflation, savings do not.
Why Inflation Affects Retirees More Than Everyone Else
Retirement savings can mean a few things.
Retirees with money in a diversified portfolio or retirement account are generally better equipped to weather high inflation.
Thats because stocks have historically over long periods of time outpaced inflation.
In fact, the average stock market return is about 10% per year for nearly the last century.
Did you know?
Unless the government collapses, you cant lose any money you invest in I bonds.
The government resets the interest rate every six months, depending on inflation.
So the new rate could go up or down.
By February, inflation hit 7.5%.
So inflation is now the highest its ever been since I bonds were first created in 1998.
I bonds carry a few restrictions you should know about.
You must hold them for at least one year you cant get your money back any sooner.
Treasurys websiteor with your tax refund.
Tax software can also help walk you through the process.
Cut Back Where it’s possible for you to
No one knows how long high inflation will last.
Some economists believe itll taper off in the next few months.
Either way, inflation isnt expected to last forever.
Once inflation stabilizes, they can rework their budget to accommodate current pricing.
Bureau of Labor Statistics.
There are plenty of ways tosave money at the grocery storeandthe gas pump.
But for retirees like Robinson, its hard to find places to cut costs.
My budget cant stand prolonged inflation, Robinson said.
Im just hoping it will be over soon.
Be Shrewd With Your Health Care Dollars
Health care is usually your biggest expense in retirement.
(Once youre enrolled in Medicare, you cant contribute to an HSA.)
Your health care expenses dont just disappear once you enroll in Medicare, though.
Youll still owe premiums, deductibles and other out-of-pocket costs.
Medicare isnt free, after all, and the program is difficult to navigate.
Thankfully theres a government-funded program that can help you save money on Medicare.
They can also offer guidance on unique situations, like how Medicare interacts with Medicaid.
Look for Ways to Generate Income
Generating money is another way to offset inflation.
it’s possible for you to explorepart-time jobs for retireesor check outwork from home jobsthat fit your skill set.
There are otherless conventional ways to generate moneytoo, like selling unused items around the house orselling your car.
Speak With a Financial Advisor
Figuring outhow much money you need in retirementis tricky.
There are a ton of variables to consider, and everyones situation is different.
A certified financial planner can also determine a good drawdown strategy for your retirement savings.
This helps minimize taxes and losses so you keep more money in your pocket.
Like most things in life, advice from a financial planner isnt free.
However, an hour with a qualified professional can help save you thousands of dollars in the long run.
ensure you carefully research financial advisors in your area.
Here are afew questionsto ask a financial expert before you shell out any money.
Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder.
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