Inflation is having an effect on everyone, but seniors are facing significant challenges
KSTU-TV (Salt Lake City, UT)
Inflation is impacting everyone, but it's having a specific effect on older adults and those considering retirement.
In this week's Booming Forward report sponsored by Optum, Senior Policy Advisor with AARP, David John, says seniors have more to watch out for because loans or credit card rates are likely to take a bigger bite out of their budget.
He says, "It's a matter of making due with a bit less, it's a matter of going to possibly work longer, getting another job or other some form of income in there, the other thing to think about going forward is if you have debt in retirement, the cost of that debt may go up because inflation rates usually mean interest rates go up too."
John advises, if you're about to retire, you might consider working longer hours to maximize your social security income.
You might also want to delay taking your social security benefits, since they go up every year until you turn 70.
And, he says, watch your investments. "Continue to save, if you've been saving at a set amount already, don't stop. One of the big mistakes some people make is when the stock market fluctuates, they move into a safer investment and that sounds like a good thing, but what you're really doing is - locking in your losses," John adds.