Retirement security requires long-term planning, but inflation can complicate these efforts. While the Federal Reserve usually targets an inflation rate around 2%, the U.S. has experienced seven periods of inflation rates exceeding 5% since World War II, according to Modeling the Impact of Inflation on Retirement Savings Portfolios, a report by the Society of Actuaries (SOA).
High inflation can harm retirees’ buying power. Staying well-informed about investment choices, both during the planning phase and after retirement, can help protect against inflation risks.
