Is Inflation a Retirement Wrecker? It Doesn’t Have to Be
Is high inflation threatening your retirement plans? You’re not alone.
According to the BMO Real Financial Progress Index, 25% of older Americans say they’ll need to delay their retirement. Eighty percent plan to change their actions to offset the impact of inflation and rising costs of everyday essentials.
But rather than abandoning your plans altogether, your retirement strategy might just need a few tweaks to keep you on track. Here are a few options:
- Re-enter the workforce or consider part-time employment. In February 2022, the number of retired workers turned employees climbed to around 3% of total retirees — the highest level since March 2020. Taking on a post-retirement job can be a great way to earn extra money. Just one additional year in the workforce can increase your savings, as you continue making contributions to your retirement account. And in the meantime, you’ll benefit from a steady paycheck to cover your regular expenses.
- Curb your spending. Planning a major home renovation, a vacation or a new car purchase? Not so fast. If you’re following a strict budget each month, there may be no room for extra spending in this economy. Keep your spending limited to the essentials. As the rate of inflation eases, you may have more wiggle room for the extra splurges.
- Delay Social Security. While money may be tight right now, you’ll receive a larger benefit amount by holding off on claiming Social Security. You’re eligible to begin collecting at age 62, but you’re only entitled to a portion of your benefits at that age. Delaying until you reach full retirement age makes it more likely that you can collect 100% of what you’ve built up. This may help improve your situation over the long-term.
- Rethink your investments. How diversified is your portfolio? Are you making the most of a down market? It’s a good time to review your investment allocations and speak with a financial advisor about how you’re managing risk and discuss any adjustments that could benefit your unique situation.
- Consider a reverse mortgage loan. If you’re planning to age in place at home, a reverse mortgage can be a valuable financial tool to help keep your retirement plans intact. This type of loan allows you to leverage the home equity you've built up over the years, as you continue to live in and retain the tile. Best of all, there are no monthly payments. You pay as little or as much as you want, when you want. As with any mortgage, you must meet your loan obligations, keep current with property taxes, insurance, and maintenance. And because it’s a non-recourse loan, you won’t owe more than your property is worth at the time the loan is repaid.
With a reverse mortgage, you don’t have to change your retirement dreams. It can afford you the financial peace of mind to make much-needed home renovations, take the vacation you’ve been putting off or stay at home for good — without the financial pressure to return to the workforce. The loan specialists at Reverse Mortgage Funding, LLC (RMF) can help you determine if you’re the right candidate. Call us today at (888) 277-1567 to learn more.
Be prepared for the coming years
How long do inflationary periods last? As conditions are constantly changing, take measures to help you thrive on a fixed retirement income, no matter the present challenge.
This content is sponsored by RMF, one of the nation’s leading reverse mortgage lenders. We are dedicated to helping older Americans live the retirement lifestyles that they imagined and deserve, in the comfort of their own homes. As a result of our commitment to providing an extraordinary and positive customer experience, we have earned a 98% customer satisfaction rating; a 5-star / Excellent score on Trustpilot; 4.5 out of 5 stars on LendingTree; and an A+ rating with the Better Business Bureau. Call (888) 277-1567 to speak with one of our experienced reverse mortgage specialists to learn about our retirement financing products and solutions.