Inflation's impact on retirees

Описание: As inflation has hit a forty year high, we are seeing price increases in many areas. For those nearing or in retirement, you might have noticed healthcare expenses rising, which packs a more permanent punch than gas. Rob De Lessio of Strategic Wealth Designers discussed how the record high inflation rates are impacting those that are around retirement age. See more financial news at https://local12.com/community/its-you....

“This year’s inflation is outpacing the current cost of living adjustment for 2022, regardless of the six percent increase from the previous year,” De Lessio says. “While the COLA increased, Medicare premiums substantially rose. The purpose of the cost of living adjustment, is to preserve Social Security payments and the purchasing power that they hold. Even with necessary adjustments to the cost of living adjustment, inflation has a lasting impact on healthcare expenses.”

Healthcare costs differ greatly in comparison to other goods and services when it comes to inflation. Healthcare costs are not adjusted back down when inflationary periods stabilize and return to their average rate. Typically, there is a sharp increase in cost that follows the inflationary spike and instead of those costs lowering, they climb slowly from that point.

“In many situations, retirees are having to reevaluate their budget and lifestyle plans to be able to afford healthcare necessities,” De Lessio says. “It is important not to solely rely on Social Security payments as their value has decreased over thirty percent since 2000. While there is potential for larger payment in the coming years, depending on social security alone to fund your retirement is not an effective strategy.”

Healthcare costs are rising as a result of rising inflation and recovery from the pandemic. To see additional stories surrounding business and economic news for the Cincinnati area, visit https://local12.com/community/its-you... and if you have a question for Rob send an email to [email protected].