One of the biggest financial impacts that can affect the value and buying power of your retirement savings is inflation. Inflation can make the money that you have saved go a shorter distance, which is obviously very worrisome when you aren’t working and are expecting to survive on this money. However, there are some ways you can plan for inflation to offset any future decreases in buying power.

First Thing First: Save More While You Are Still Working

The easiest thing you can do is just simply save more money while you are still working. If you are already putting money away, consider increasing your savings over a period of time so that you can have an extra cushion in your retirement savings to help fight against inflation. Now is the time to put the money away, and even having just an extra $100,000 can give you more freedom and mobility with your money if inflation starts to hit your savings negatively.

Why Not Invest in Yourself?

In an article by Investopedia, one option that many have overlooked is the value of investing in oneself. This starts with getting a quality education and learning new skills so that you set yourself up for higher salaries later down the line. In doing so, this allows you to not only make your income inflation proof but also will make your career recession proof. This will enable you to make the best of the years that you are still working.

Investing for The Long-Term for A Variety of Market Conditions

Simply put, there are no guarantees in investing. However, generally speaking, stocks and bonds tend to outpace inflation. According to CNN Money, stocks and bonds typically outpace inflation by several percentage points over the long term. That is why Walter Updegrave recommend that you create a diversified portfolio of stocks and bonds, putting most of your investment in index funds, which should give an individual the sustainable returns.

Another option available to you according to the article “How To Mitigate Inflation Risk In A Retirement Income Plan” by Forbes, is to invest “in dividend paying equities, investing in commodities, and purchasing I-Bonds.” I-Bonds are able to fight the negative effects of inflation because they “earn interest through a mix of inflation and fixed rates.” However, the limitation with I-Bonds is that the government sets a cap on how many of these an individual can purchase.

Another option available to you is owning a rental that will provide you an income. Having a rental income can help bolster the money coming in. Although owning a rental comes with certain responsibilities that some would rather avoid when retired, it does provide one an opportunity to make money when they stop working.

Preparing for The Future

Many people find that they did not save enough for retirement. That is why you should take steps while you are working to make sure you are planning appropriately. Whether that means consulting a financial advisor you trust or expanding your own knowledge base so that you can set yourself on a financial trajectory that will allow you to enjoy retirement without the stress of not having enough money.