#3 Financial Risks—Inflation risk
Inflation should actually be a concern for anyone who lives on a fixed income. Even really low rates of inflation can drastically affect the well-being of retirees who live for many years. So, a period of unexpectedly high inflation can be catastrophic.
According to the SOA, retirees and would-be retirees should really consider investing in equities, a home, and other assets, such as Treasury inflation-protected securities (TIPS) and annuity products with a cost-of-living adjustment feature.
These types of products can be a huge help in curbing the negative effects of inflation. As a plus, would-be retirees can choose to continue working, even if it’s only on a part-time job.
