drmonalidesai on Nostr: Stagflation: Why Retirees Should Care 🇺🇸 While the U.S. economy isn’t ...

Stagflation: Why Retirees Should Care 🇺🇸 While the U.S. economy isn’t officially in a period of stagflation yet, signs are pointing in that direction. Also concerning is that if stagflation starts, it’s unclear how long it will last.

“Stagflation is a double whammy for retirees, who now have to pay for things (via inflation) and likely have lower savings if the markets continue to do poorly,” says Blanchett. In periods of stagflation, it can be difficult for retirees to maintain their lifestyles without drawing more money from their retirement savings accounts. With stock markets down, retirees can no longer absorb inflation by relying on rising investment accounts as they did in the past, says Dann Ryan, managing partner at Sincerus Advisory.

As a result, Ryan says retirees may need to pay more attention to how much they draw down from their retirement accounts; they should make sure they are closer to the 4% withdrawal rate during periods of stagflation. Retirees may also need to rein in their spending and adjust their lifestyle to cope with rising prices for goods and services.

https://www.kiplinger.com/retirement/retirement-planning/stagflation-what-is-it-and-why-retirees-should-care