Retirees are often aware of the detrimental effects of inflation on their retirement savings. As the cost of goods rises, the value and buying power of many retirement accounts diminish. And for some retirees, maintaining their savings and lifestyle becomes a challenge. 
Luckily, there are different methods retirees can use to adjust for inflation and help protect the value of their retirement. Below we’re discussing some of the ways inflation affects retirement and how you can prepare. 
How Is Yearly Inflation Calculated? 
Inflation is calculated using the Consumer Price Index (CPI) which calculates inflation across major 
1 categories before determining a yearly inflation rate expressed as a percentage. 2
On average, the U.S. experiences an inflation rate of roughly three percent. This percentage and the percentage expressed by the CPI are helpful for understanding inflation across multiple markets. But these values should also be understood as a general approach, meaning the real impact of inflation will depend on the individual. 
For example, we might assume that a retiree might need to withdraw an additional three percent from their savings each year in order to adjust for inflation. But this isn’t the whole picture. Instead, this retiree should consider the specific ways that inflation affects them. 
Considering Individual Costs 
Inflation affects each of us differently. For example, the rising cost of gasoline would affect someone that drives long distances more than someone without a vehicle. 
Retirement acts in a similar fashion, as it creates a lifestyle change that causes inflation to affect retirees differently. 
One of the better ways to measure this difference is through the Consumer Price Index for the Elderly (CPI 3 E), which shows inflation rates for households with individuals age 62 and above. 
However, this is still a generalization, though of a specific population. The best way to determine the cost of inflation is to examine your personal lifestyle and make adjustments. 
Managing the Effects of Inflation 
With the above in mind, here are some ways to help offset inflation during retirement. 
Social Security 
The Social Security Administration provides the Cost-of-Living-Adjustment (COLA) to offset some of the 4 
effects of inflation by raising Social Security benefits. This can be an important source of income during retirement. However, the COLA is also based on the CPI-W, meaning some individuals may not be able to rely on 4 adjustments from Social Security to make up for all cost increases. 
Investments that Adjust with Inflation 
Certain investments can adjust with inflation. However, any investment comes with risk, something that should always be considered during retirement. Be sure to consult with your financial professional before making any investment decisions. 
A Change in Lifestyle 
Consider your retirement goals and overall lifestyle. Is there something you can trim back on to save on the cost of inflation? This does not mean you need to give up on retirement goals. Rather, what can be adjusted to help you achieve them while maintaining your savings? 
This is by no means a comprehensive list of ways to protect your retirement savings against inflation. Rather, it is intended to demonstrate some of the options available to you. Consult with your financial professional to acquire a better understanding of how inflation will affect you, and what you can do to help protect your retirement savings. 
1. https://www.bls.gov/cpi/ 
2. https://inflationdata.com/Inflation/Inflation/DecadeInflation.asp 
3. https://www.bls.gov/cpi/research-series/r-cpi-e-home.htm 
4. https://www.ssa.gov/cola/ 
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

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One of the most common misconceptions about retirement is that “retirement is a single event.” Not so many people understand that retirement, just like work-life, has stages. Although retirement may be unique to each person, it generally passes through three stages or phases namely; active retirement stage, slow down retirement stage, and inactive retirement stage. 
Understanding the different stages of retirement and taking away the assumption that retirement needs are the same throughout retirement can help you plan for your future years effectively. It is important to know that each stage has its own expenses, and those expenses greatly depend on your activities, lifestyle and health. 
Retirement isn’t a single phase or stage. It has different stages and learning, understanding, and adequately preparing for each stage is imperative for your financial wellness throughout retirement. In order to help you better plan for retirement today, we're taking a look at the three different stages of retirement and how you can plan accordingly for each stage. 
Active Retirement Stage 
This stage occurs in the early years of retirement, usually between the ages of 60 and 75. At this stage, a retiree is still trying to figure out what to do with their newly found free time while enjoying the fruits of employment. Between this age bracket, retirees are still active health-wise and often find themselves looking forward to taking vacations and enjoying what life has to offer. As a result, the cost of living increases and more money is spent during these earlier years of retirement. 
To have control in this stage of retirement, it is always a good idea to let your money continue to grow. Working with a retirement planner during this stage can help advise you on the best investments to keep your money growing so that you can remain better prepared for the next two stages of retirement. Considering that this stage of retirement is quite exciting and full of adventure, it's important that you have the cash flow to sustain your budget. Plan accordingly before you retire and list the things you would like to try at this stage even before retiring. 
Slow Down Retirement Stage 
The slow down stage typically occurs between the ages of 75 and 85. In this stage, the retirement hype experienced in the first stage starts to fade away and you are more into taking-it-easy with life. Here you may find yourself spending most of your time visiting family and friends, and you may also start considering downsizing into a smaller home or moving closer to your grandkids and other family members. 
Cash flow is equally important in this stage as it was in the active retirement stage. Although not most of it will be going towards travel and leisure, expenses related to healthcare costs may start to rise as you get older in age. At this stage, you still want your money to grow and therefore it's important to choose investments that won’t risk losing your money. 
Inactive Retirement Stage
Ts ast stage occurs rom te age o 85 an onwars. Here, your e w cange n many different ways. At this stage maybe your energy levels are lower, and you may to call on your family for more help moving around or carrying out various personal 
activities. During this stage, you may see a reduction in your cost of living because 
you will not be moving around as often as the previous stages. However, on the other hand your healthcare costs may rise significantly. 
During your earlier years of retirement, you need to plan for this stage well. It's 
important to have a plan in place about how you will want to be cared for in case 
your health makes you dependent on others. Inform your family about your savings and delegate authority to someone who can make important financial decisions for 
you in case your cognitive abilities begin to decline. In this stage, deeply focus on 
yourself and your general well-being in the final years of life. 


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This content is developed from sources believed to be providing accurate information, and provided by Twenty 
Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax 
professionals for specific information regarding your individual situation. The opinions expressed and material 
provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

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​Starting college is supposed to be a milestone moment, not just for the student, but also the
parents. You pack up the car and make the drive to your child’s dorm. You may set up furniture,
meet their roommate and even take a tour of campus. Eventually, the move-in process ends,
and it’s time to leave your child on their own, ready to start the next chapter.

​The coronavirus pandemic has touched nearly every aspect of our lives. Perhaps nothing has been impacted as much as the way we work. While millions of Americans have lost their jobs during the pandemic, those who remain employed have seen their work change drastically.
 
In many professions, work-from-home has become the norm; not the exception. Some people have seen their work paused during this time. Others are on a mini sabbatical until their work gets back to normal. And for those who have lost their job, this may be a frightening time as they try to navigate an uncertain job market.
 
In many ways, this time could be seen as a small trial run for retirement. Your schedule isn’t clearly defined. You may be spending much of your time at home. Your work responsibilities may be limited or cut significantly. There are lessons you can take from this time and apply to your retirement. Below are a few of the biggest takeaways:

The United States set a somber record on Thursday, July 16, 2020, with more than 75,000 new COVID-19 cases. In fact, the U.S. set new single-day COVID-19 records 11 times between June 17 and July 16. Dr. Anthony Fauci predicts the country will soon top over 100,000 new cases each day.1
 
COVID-related deaths are also increasing in some states. Florida set its single day record for COVID deaths on July 16, with 156. Nine other states also set single-day death records the same week.1
 
The resurgence in coronavirus cases has led some states to enact new measures. More than half of all states now have some kind of mask mandate. California has even rolled back its reopening, closing bars, indoor dining, gyms, and more.2
 
What does this mean for the economic recovery? And what does it mean for your financial future? It’s impossible to predict what will happen in the short-term, but knowing where things stand today may help you make important decisions with your strategy.

What’s your biggest retirement fear? If it’s running out of income in retirement, you’re not alone. According to a recent study from Transamerica, the number one fear for Baby Boomers is outliving their assets and running out of income.1 Boomers aren’t alone. Generation X is also projected to be far behind on their retirement savings, with an average balance of only $64,000.2
 
These numbers may explain why 52% of workers expect to work beyond age 65. Among Boomers, that figure jumps to 68% who expect to or are already working past age 65.3
 
Continuing your career into your late 60s or even early 70s is one way to accumulate more savings and protect your retirement income. However, it’s not the only option. Depending on your goals and needs, you may just need slightly more income to reach your objectives.
 
Below are four creative ways to stabilize your income in retirement: