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Should I Still Worry About Inflation’s Impact on My Retirement Plan?

Renee Porter-Medley, CFP®, Regional Director for Financial Planning

<p>Should I Still Worry About Inflation’s Impact on My Retirement Plan?</p>

From 2010 to 2020, investors experienced the best-case scenario of low inflation and strong investment returns from stocks and bonds. Retirement portfolios held steady or even grew in value, enabling retirees to sustain a withdrawal rate that met their spending needs. For many, worrying about inflation seemed to be a thing of the past.

Key Takeaways

  • Inflation may persist above the Fed’s 2% target, but long-term planning can mitigate its impact.
  • Retirement plans that model multiple inflation scenarios offer confidence and flexibility.
  • Social Security’s COLA and IRS inflation adjustments are built-in buffers — but must be integrated into a broader plan.
  • A sound financial plan helps clients stay the course during uncertain economic periods.

The bottom line: Individuals with a well-designed financial plan account for inflation and are better equipped to stay on track, even when markets or headlines create uncertainty.

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