Rising inflation has caused many retirees to wonder if they should change their investment strategy to cope with these new economic factors. The one problem is, many of the moves they could make are sometimes at odds with traditional retirement best practices and may seem counterintuitive.

This has left many retirees confused and not sure what their next step should be. This is something that usually leads to inaction, which is generally not the best response to any financial issue.

So, below we’ll look at how inflation can impact retirement and what you should consider to help deal with it and minimize the negative consequences.

Consider Your Age And Expenses

Retirement is not the same for every person or every investment. For most people, retirement takes place over several stages. For example, there is early retirement where one’s spending may be quite different than later in retirement.

This can be due to goals, hobbies, or health reasons. Either way, it’s important to know which phase of retirement you are in. This way, you can see how your current spending patterns are impacted by inflation.

Inflation doesn’t impact all goods and services equally. Transportation, energy, health care, and other costs can all be impacted differently.

Early in retirement, you may spend more on travel and transportation. But later, those expenditures may make up a smaller amount of your budget, and inflation in those areas is less of a factor for you.

Consider Stocks Over Other Investments

In general, stocks will hold up better to inflationary pressures than other investments. This is even more true compared to cash holdings.

However, allocating more money toward stocks is generally contrary to conventional retirement investing. But to protect yourself from inflation, allocating portions of your portfolio to trusted stocks can provide protection from inflation.

This doesn’t mean you should get risky and try to make up inflation losses by chasing high returns on the latest hot stocks.  Instead, choose safe stocks with a proven history.

Be Flexible With Your Spending

You may have to put off certain activities or purchases for the time being until inflation begins to subside. If travel expenses have gone up due to inflation, then you may need to put off that trip if it is outside the budget, at least for now.

But also, Social Security can help fill some of the gaps here so retirees can lean on that more for help through these times. Recently, Social Security benefits received one of the largest increases in history due to inflation.

More Information About Inflation And Retirement

The current inflationary climate can be stressful and frightening for those just entering retirement. Many of their projections have now been altered and they may feel their options are limited.

Thankfully, the wealth management experts at ICCNV can help. Their financial team can help you navigate these inflationary times with proven strategies to fight rising costs with smart investing.

ICC provides clear, unbiased guidance for female executives and it is backed by a team of experienced fiduciary financial advisors. To learn more about the services they offer, visit www.ICCNV.com.