So, everyone is freaking out about inflation. In fact, 25% of people say they will need to hold off on retiring due to the growing cost of everything from socks to potatoes.
And it’s not just the old people… errrr… retirement-aged people who are worried. More than half of 18-34 year olds said they’ve had to cut back on how much they’re saving, and that includes retirement savings.
But is their concern… *dramatic pause* over-inflated? (buh dum… groan)
Here’s Five Fast Facts on the Retirement Panic:
- ✋ Jumping the Gun - Some financial experts say it’s probably too early to even think about changing the amount you save. Right now, you’re aiming at a moving target as inflation rises almost daily. It’s best to wait until inflation levels off before making changes.
- 📈 Retirement accounts are inflating too - Got a retirement account? Well, it probably has stocks… and stocks tend to win against inflation. Keep leaning into that account and trust. the. process.
- 🏠 Bring down the house - Don’t forget about home equity! There’s a reason a lot of retirees are selling their homes for ridiculous prices right now: inflation has increased home values at an insane rate. That will likely be a resource no matter when you retire.
- 🧠 It’s all in your head - Some brainy people at Harvard have noted that we are super bad at predicting what our future will be like. Obviously, you may have big dreams for your retirement life… but those may be very, VERY different from what you actually want when you finally get to retire. Think less “climb every mountain in the world” and more “meet your friends at McDonald’s every Saturday morning and complain about avocado toast and modern hairstyles.”
- 💵 Ah SNAP: There’s more to your retirement than just the cash save - Folks who do retire usually always have multiple resources available and remembering this should calm your nerves. Consider that Social Security likely adds about another 33% to your retirement income (for at least as long as it lasts.) Plus, there’s the Supplemental Nutrition Assistance Program (aka. SNAP), there’s Mom’s Meals, the Medicare Saving Program, and even Medicare Part D’s Extra Help plan for medical and prescription drug support.
🔥Bottom line: Things are scary. Things are uncertain. And the news cycle selling you the story of “America’s Pending Financial Armageddon: Threat Level Midnight Edition” doesn’t help. But it’s pretty clear that unless you’re on the verge of retiring, there’s absolutely no need to hit the panic button with your retirement. Smart saving and a cool head is the key.
What do you think of the retirement landscape? Let us know by connecting with us on Social Media and be sure to share this newsletter with any friends & coworkers!
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