(WHTM) — 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, but there are things retirees can do to help themselves.
With inflation at 40-year highs and interest rates soaring, retirees and those near retirement are feeling the pinch.
“Retirement is 25, 30 years on average for people, and we want to make sure that the money that we have saved for that time frame is going to last,” said Farnoosh Torabi, CNET Money editor-at-large.
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 there are apps out there that can help you do that,” Torabi said.
If you’re 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,” Torabi noted.
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, retirees can also strategize about how to pay off any debt they may have.
“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,” Torabi said.
And 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 taking.
“If you spent your entire career working and exercising a skill or talent, maybe there’s a way to still leverage that, to monetize that in retirement through part-time work,” Torabi suggested.
Torabi also says retirees can diversify where they shop — don’t just look for sales at the grocery store, check for deals at drug stores, dollar stores, and big box stores, too. Also, visit gift card resale sites to buy discounted gift cards for eating out.