LANSING, Mich. (WLNS) – Although inflation may be slowing down somewhat, the cost of living is still increasing at much higher rates than in recent years.
That can be especially hard on people in retirement or nearing retirement.
With inflation at 40-year highs and interest rates soaring, retirees and those near retirement are feeling the pinch.
CNET Money Editor-at-Large Farnoosh Torabi says there are things retirees can do to fight inflation, starting with looking for ways to cut expenses, like subscriptions.
“If you have some subscriptions that maybe you took on pre-retirement and maybe you forgot about them, or they feel like they’re not a lot of money every month, but over the year, it can be hundreds of dollars. Consider unplugging them and their apps out there that can help you do that,” said Torabi.
If you’ree on a fixed income, another thing you can do is check how the money you’ve saved is being invested.
“One thing to keep in mind is that just because you’re retired doesn’t mean you have to stop investing for your retirement again,” said Torabi.
Experts say a financial advisor or trusted family member can help in looking at your investment plan and your rate of withdrawal. With interest rates rising, strategize about how to pay off any debt you may have.
“So if you do have outstanding credit card debt or any sort of personal loans, car loans where the interest rate could adjust higher as the federal reserve raises interest rates, prioritize that because that’s going to cost you a lot of money in this environment,” said Torabi.
With unemployment rates low and wages rising, Torabi says it might be time to think about going back to work to recover some of the money that inflation is takin
“If you spend your entire career working and exercising a skill or talent, you know, maybe there’s a way to still leverage that, to monetize that in retirement through part-time work. So don’t be afraid to get back in the game.”