Do your plans and preparations for retirement include a proper accounting for inflation—the gradual rise in prices that erodes purchasing power over time? Servant Solutions is here to help you manage this impact and retire with confidence.

Retirees on fixed incomes often feel the sting of inflation more sharply. Essentials like healthcare, food, and utilities continue to rise in cost, leaving fewer resources for quality-of-life spending on things like travel, home repairs, and leisure. This is why inflation is often called the “stealthy thief” of retirement—eating away at your hard-earned savings and reducing funds for enjoyment.

Inflation has been higher in recent years, creating challenges for those who rely on Social Security and other fixed-income sources. The LIMRA Secure Retirement Institute estimates that a 3% inflation rate could reduce the value of Social Security benefits by over $117,000 over 20 years. And healthcare costs, which historically rise at twice the rate of regular inflation, are a key concern for retirees who typically face higher medical expenses.

How to Prepare for Inflation in Retirement

While inflation might feel overwhelming, taking proactive steps now can make a significant difference. Here are some actions you can take:

• Maximize Your Retirement Contributions: Consider consolidating retirement accounts with Servant Solutions to simplify planning and take advantage of low fees. Increase contributions as you receive raises or bonuses. Take advantage of the “catch-up” provision for those 50 and older to bolster your savings.

• Consider Delaying Social Security: Waiting to claim Social Security payments can increase your monthly benefit significantly, providing a stronger income base that better withstands inflation.

• Adopt a Balanced Investment Strategy: While equities can be volatile, including them in your investment mix can be a powerful inflation hedge over time. Our financial planning team can help you evaluate your portfolio.

• Test Your Retirement Budget: Try living on a retirement-friendly budget for a year or two to understand any lifestyle adjustments you may need. This will give you a clearer picture of your true financial needs and help reduce spending.

• Reduce Housing Costs: Downsizing can save on costs and better match your needs in retirement. The funds from a home sale or lower mortgage can support long-term financial goals.

• Aim to Be Debt-Free: Minimizing debt can give you the flexibility to navigate the unexpected expenses inflation may bring.

How Servant Solutions Can Help

Servant Solutions is committed to supporting your retirement journey. Through our Financial Roadmap process, we offer free financial planning tools, personalized guidance, and resources to help you thrive in retirement. Reach out to us today to start planning for a fulfilling, financially secure retirement despite inflation’s impact.