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10 Ways to Beat Inflation in Retirement

By Danielle Miura October 21, 2022 Managing Money

Inflation is a significant concern for retirees worried about the rising costs of necessities. According to a recent Global Atlantic Financial Group survey, 61% of retirees who invest assume that with low-interest rates and rising inflation, they won’t have enough saved to cover their lifetime expenses.

Retirees worried about exhausting their retirement savings early may find that inflation only adds to their concerns.

Here is a list of strategies to consider as you face rising inflation.

Evaluate Your Spending Patterns

Rather than looking at what you have spent in the last couple of weeks, go through your bank and credit card statements from the previous three to six months. The further you go back in time, the more data you will have to get a more accurate idea of your average monthly expenses.

If your expenses have increased over the last couple of months, use this inflation increase percentage to calculate how inflation has impacted your bills.

Analyze Your Budget

If you find that you are spending more than you owe, it might be time to cut back on your expenses. Start by identifying nonessential expenses, like entertainment and eating out, and see if anything can be cut or reduced. If you have extra money left over every month, use it to pay off debt or put it in an emergency fund.

Postponing Big Expenses

Suppose you are planning a vacation, considering remodeling your home, or buying a luxury purchase. In that case, you should consider postponing these purchases and allocating the funds toward your day-to-day living expenses. Then, when inflation has subsided, you will have the chance to make extra splurges into your budget again.

Utilize Your Cash

For those with substantial cash reserves, it might be time to spend those funds rather than selling stocks or making withdrawals from your retirement accounts. Don’t withdraw from your emergency fund when using cash to cover expenses. Your emergency fund is geared to helping you in unexpected financial circumstances.

Pay Down Debt

One of the best ways to increase the longevity of your retirement savings is to reduce your monthly expenses. With rising inflation rates, paying down adjustable loans, like credit cards, will free up extra cash for living expenses.

Consider Downsizing

For those who want to reduce their current expenses, a smaller home might help. Look for neighborhoods that cater to retirees or are easily accessible to supermarkets. By downsizing, you can use the proceeds of selling your home and furniture to cover your expenses or set aside savings for the future.

Let Social Security Help

Social Security benefits, adjusted based on the inflation rate and the standard cost of living, can play a crucial role in supporting your monthly income in retirement. For half of retirees, Social Security benefits form a large part of their income. As inflation increases, retirees receiving Social Security will see their income reflect this change.

Invest in Inflation Hedges

Choose investments with inflation protection to reduce inflation’s impact on your retirement savings. Some possibilities include the following:


Treasury inflation-protected securities (TIPS) is a Treasury Bond that adjusts their return based on the inflation rate.


Series I Savings Bonds pay a low, fixed interest rate and a variable rate that adjusts based on the inflation rate.

Other Options

Other inflation hedges are investments that tend to do well during periods of high inflation, like real estate investment trusts (REITs), precious metals, and commodities.

Keep Working in Retirement

The best way to preserve your capital is by continuing to earn money. Every dollar you earn in retirement is one dollar you don’t need to withdraw from your retirement savings. Of course, this doesn’t mean you have to keep a 9-to-5 job that you don’t enjoy. Instead, reducing your hours, finding a new job, or creating passive income can give you an extra cushion for retirement.

Consult A Financial Advisor

Determining whether you have enough money to last until your last days is often challenging, and inflation makes it trickier. For example, an inflation rate of 3% per year can cut your retirement savings by more than half over 25 years. To ensure a concrete retirement plan, consult with a financial advisor to understand your future financial needs and how to prepare adequately.

Let’s Have a Conversation:

What scares you the most about inflation in retirement? What have you adjusted to try to beat inflation in retirement? 

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I am residing in Mexico. Lower cost of living, great weather, doctors that still visit you at home, healthier food and so far great people!


Where in Mexico? Can you still keep your US citizenship?


Retirment comes early to those who are struck down by injury or illness. A small economical (DIY) investment in our home created a one bed studio aparatment to rent. Every week $180 is paid to us by the tennant. Additionally he pays his share of ultilities costs. This decision afforded us better sleep. Our tennant has occasionally helped with heavy lifting, pruning trees, cutting lawn, picking up groceries and driving my husband to hospital. Our tennant knows that his rent should be $230 per week instead of $180. We negotiated what help we frequently needed and did a deal in exchange for lower rent. For ten months we have enjoyed this arrangement. And…yes. From time to time when a cook a cake or dessert that is too much for our consumption I share it with our tennant. He loves this special attention. The only way to cope with inflation in retirement is to ‘think outside the box’ Do what you can. Our installation of a 3m wall and door has earnt us $7,200 to date. Our food source every day of the year, is through growing our own vegetables, herbs, berries and fruit in pots and raised garden beds. This supplies us with costless food and rich nutrition. And exercise one to two hours a day.

Shirley J

Yes, I chuckled to myself about working while retired. Is that really retirement? The other tips are most helpful but if I and others have implemented all or most of them already, heaven help us! The retirement part of retirement is the only thing left to enjoy during these economic and social challenges! I believe that these tips and ideas to live by in good times and bad. This is a great reminder to do just that! Thanks!


Articles often say to keep working in retirement. However, I did not find that possible. There is such a prejudice against senior citizens, I’d apply for jobs and could never even get an interview. When I tried a temporary employment service, they ignored me. I’m educated, well-dressed, and retired with a lot to offer. However, once the guessed my age from my application and/or resume. I wasn’t given a chance. My husband tried to go through an employment service and as soon as they asked his age, they hung up on him.

The Author

Danielle Miura, CFP®, is the founder of Spark Financials, a Fee-Only Financial Planning Firm focused on serving the needs of caregiving families nationwide. Danielle specializes in comprehensive financial planning, financial education, and tax law research. Find out more at and contact her at

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