Categories: Curiosities

15 Ugly Truths About Retirement

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Inflation Can Eat Away at Your Nest Egg

Thanks in large part to strategic moves by the Federal Reserve, the U.S. has seen very little inflation for the past 25 years. Still, as anyone who’s lived through a sky-high inflationary environment can attest, 10-percent-per-year inflation can happen.

Inflation “can be devastating for retirees,” said Struthers. “If we are in retirement for 30 to 40 years, and we have a fixed income stream, its purchasing power can easily be cut by 60 to 70 percent.”

To combat inflation’s effects, Struthers suggested investing in inflation-sensitive assets like Treasury inflation-protected securities (TIPs), I-Bonds and real estate.

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