Cortburg Speaks Retirement

How Inflation Threatens Your Retirement Plan

• Miguel Gonzalez, MBA, AIF®, CPFA®, CRC® • Season 2025 • Episode 251

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Inflation is one of the biggest threats to retirement bug it’s often overlooked. In this episode, Miguel Gonzalez, CRC, shares how rising costs impact retirees and how to protect your income with smart planning.

Cortburg Retirement Advisors is a boutique financial planning firm committed to helping you grow, protect, and preserve your assets from your first job to retirement. We specialize in wealth management, estate and tax planning, group retirement, employee benefits, insurance, and retirement planning to navigate any economic climate.

Miguel Gonzalez, a Retirement Specialist with 20+ years of experience, offers expertise in retirement income planning, investment management, and retirement plan design. With an MBA from Columbia Business School, and professional experience with JP Morgan Chase, Merrill Lynch, and more, Miguel is a trusted advisor for his clients.

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Welcome to Cortburg Speaks Retirement Podcast
with Miguel Gonzalez, MBA, AIF®, CPFA®, CRC®

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Welcome to Cortburg Speaks Retirement

An audio podcast about investing in the stock market, financial planning, money management and retirement planning.  Each Wednesday, we help investors at all stages of life learn how to potentially grow and preserve their money from first job through retirement.

Now here is your host, Miguel Gonzalez.

Good morning and welcome to the CORTBURG SPEAKS RETIREMENT audio podcast.   

This week, let’s talk about a challenge that quietly chips away at your retirement—even when the markets are doing well:

Inflation.

We’ve all felt it. Grocery bills inch higher. Utility costs rise. Your favorite vacation spot now costs twice as much as it did a decade ago. But when you’re retired and living on a fixed income, inflation isn’t just annoying—it’s dangerous.

Let’s take a closer look at how inflation affects your retirement—and what you can do to protect yourself.

1. The Long-Term Impact of Rising Costs

Inflation is the rise in prices over time, which reduces your purchasing power. Even moderate inflation can have a dramatic effect over a 20- or 30-year retirement.

Let’s say you need $60,000 a year to live comfortably when you retire. If inflation averages 3% annually:

  • In 10 years, you’ll need about $80,000
  • In 20 years, nearly $108,000
  • In 30 years, more than $145,000

Without an inflation-fighting strategy, your standard of living could slowly erode—even if your expenses stay the same on paper.

2. Not All Expenses Inflate Equally

Some categories—like food, housing, and energy—tend to experience higher inflation rates. But there’s one category that hits retirees especially hard: healthcare.

Medical costs have historically risen faster than general inflation. That means:

  • Prescription drugs may cost more each year
  • Insurance premiums can rise annually
  • Long-term care may become more expensive just when you need it most

You’ll want to build these rising costs into your retirement projections—not just assume today’s costs will stay constant.

3. Fixed Income = Fixed Risk

If you rely heavily on fixed-income sources like pensions or annuities, you may be more vulnerable to inflation.

Unless your pension includes a cost-of-living adjustment (COLA), your monthly benefit will stay flat while prices go up.

Social Security does include annual COLAs, but they may not always keep pace with real inflation—especially in high-cost years.

That’s why it's important to build flexible and inflation-sensitive income sources into your retirement plan.

4. Investing to Outpace Inflation

To stay ahead of inflation, your portfolio needs growth—not just stability.

Here are a few tools that can help:

  • Stocks: Historically, equities have outpaced inflation over long periods, making them essential for long-term growth.
  • Dividend-paying stocks: These can provide income that grows over time.
  • Treasury Inflation-Protected Securities (TIPS): Government bonds that adjust with inflation.
  • Real assets: Some retirees turn to real estate or commodities as additional inflation hedges.

The key is balance. A diversified approach tailored to your goals and risk tolerance is best.

5. Your Withdrawal Strategy Matters

Inflation should shape how—and when—you withdraw money in retirement.

For example:

  • Consider delaying Social Security to increase your future COLA-adjusted benefit
  • Withdraw from taxable or lower-growth accounts first to let other assets grow
  • Adjust withdrawals annually to account for inflation, not just flat amounts

Your withdrawal plan should evolve alongside inflation, market conditions, and your spending needs.

In Closing

Inflation is a silent threat that can shrink your retirement income if you're not paying attention.

But with smart planning, diversified investments, and the right strategies in place, you can help preserve your purchasing power and maintain your lifestyle throughout retirement.

This is Miguel Gonzalez, Certified Retirement Counselor (CRC) and Managing Partner, with Cortburg Retirement Advisors signing off for this week’s educational podcast.  

 DISCLOSURES  

CRC conferred by The International Foundation for Retirement Education.
 
 

Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Private Advisor Group, LLC, a registered investment advisor.
 
 

Private Advisor Group, LLC and Cortburg Retirement Advisors, Inc. are separate entities from LPL Financial.
 
 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
 
 

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. 

The fast price swings in commodities will result in significant volatility in an investor’s holdings. Commodities include increased risks, such as political, economic, and currency instability, and may not be suitable for all investors

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