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Should You Be Worried About Inflation Risk?
Inflation can be a drag on your retirement savings. Use these tips to minimize risk.
Editor s Note: This story originally appeared on NewRetirement.
Inflation is a dirty word when it comes to retirement finances. We have been lucky for a while. Over the last four decades, the United States has enjoyed record low inflation rates. However, the inflation risk might be changing, and you may want to consider ways to protect your retirement from the possibility of inflation.
A Big Jump in Inflation Happened This Year
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The U.S. Bureau of Labor Statistics reported that in April, consumer prices jumped at the fastest pace in more than a decade. Higher prices were somewhat expected due to an increase in demand for goods and services as we emerge from the COVID-19 pandemic while supply is lagging behind. However, the big jump surprised economists who were widely predicting a more modest increase. Inflation risk is on