Planning for retirement was generally a straightforward topic at one point in time.
Unfortunately, times have changed and they don’t seem to be reverting back to normal anytime soon.
According to a study, about 50% of Americans report that they will struggle, or are currently struggling, with their personal finances needed to maintain their standard of living once they stop working.
Millions of Americans rely on Social Security to cover their expenses. But not every senior is convinced that those benefits will be around for the long term.
A recent Nationwide survey revealed that 25% of Americans expect no social security benefits in retirement.
Social Security gets most of its funding from payroll taxes.
But in the following years, that revenue stream is expected to wane as baby boomers exit the labor force with not enough workers coming in to replace them.
Once baby boomers stop paying into Social Security, they’ll begin pulling their benefits and it could cause the program to dip into its trust funds to make up for its revenue gap.
And once those trust funds run dry, it’s unclear how Social Security will make it possible to payout benefits thereafter.
The pandemic pushed millions of people out of work, which is leading to fewer payroll tax contributions towards the program.
Recent estimates suspect the trust funds to run out of money by 2035.
Things could be worse as we see how the COVID pandemic continues to play out.
The good thing is Social Security isn’t completely in danger of running out of money but there’s a huge chance that benefits will have to be slashed in the near future.
With increasing healthcare costs, the potential loss of social security payouts, and the most recent substantial threat, rising inflation, are all placing tremendous strain on a stage of life that we should all be looking forward to– retiring.
As inflation edges higher, many retirees worry about their nest eggs.
The Labor Department reported a near 1% increase in the consumer price index. The CPI, which measures the cost of food, gasoline, housing, utilities, and other goods, had its largest one-month change since June 2008.
Inflation continues to impact every American, especially those planning for retirement. And if you don’t think it’s happening right now- keep a keen eye the next time you’re out making your household purchases.
So, why does inflation have a more significant impact on retirees? It all boils down to our financial strategies.
According to CNBC, wealth advisor David Mullins says it’s all about playing offense when it comes to inflation outliving your money.
“Commodities typically perform well in inflationary environments,” he added.
This may include metals, agricultural products, in addition to allocations of gold.
We all experienced firsthand the effects of the pandemic, don’t let it destroy your nest egg.
Call American Hartford Gold at 800-462-0071 and learn how precious metals can help protect your wealth against rising inflation.