Opinion: How to Retire in a World of High Inflation & Shaky Markets

Daniella Cressman

Disclaimer: This information is accurate and true to the best of my knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

"This year, fewer people — 47%, down from 53% a year ago — said they felt confident about being able to retire comfortably, according to Schwab’s 2022 401(k) Participant Study. Retirement anxiety also soared, with 13% of people saying they weren’t at all sure they'd be able to retire, up from 8% last year." —Jill Cornfield

A lot of folks said they are going to need to delay retirement. Those feeling the most impact are younger Americans.

"About 25% of U.S. adults say they will need to delay retirement, according to BMO Harris Bank’s quarterly Real Financial Progress Index. Those feeling the most impact? Younger Americans. Nearly two-thirds of those ages 18 to 34 said they planned to cut back on retirement account contributions." —Jill Cornfield

The truth is that your investments will increase significantly if you delay retirement.

"Reasons to delay retirement are plenty, according to Timothy Speiss, a partner with Eisner Advisory Group. People want to remain active and earn more, and the longer you put it off, the longer you’ll have for investments to grow. Remember to factor in your Social Security. Depending on how long you can delay claiming, you could boost your monthly benefit by as much as 124% to 132%." —Jill Cornfield

That being said, there are ways to retire comfortably right now if you take certain steps.

1. BE FLEXIBLE ABOUT YOUR WORK HOURS

"Your retirement years don’t have to be completely either/or...Your ‘human capital’ or ability to work is the safest asset you can own." —Carolyn McClanahan (Certified financial planner and founder of Life Planning Partners)

Honestly, working during retirement is not out of the question, especially if you are self-employed. In fact, doing so could potentially benefit you personally and professionally because you'll be doing something you love while also earning some additional income.

2. RETHINK YOUR INVESTING STRATEGY

Now is the time to be more conservative with your investments, choosing low-risk options that lead to consistent income.

3. CALCULATE HOW MUCH YOUR LIFESTYLE COSTS—WITH A LITTLE BIT OF WIGGLE ROOM

You'll want to budget for your everyday expenses, but—if possible—you'll also want to consider potential medical expenses, since you are getting older and you might be more susceptible to health problems as a result.

If you remain healthy and happy during your golden years, it's still nice to have that extra cash—just in case.

4. CONSIDER SWITCHING JOBS

If you are burnt out at your current job for any reason at all, you might want to transition to something remote or part-time—or simply more fulfilling.

5. DON'T PANIC SELL—CONTROL YOUR EMOTIONS!

It's all too easy to sell your investments when the market has a downturn, but holding onto them will likely benefit you in a big way in the long run!

With intentional planning and investing, it's quite possible to retire in comfort despite these challenging times.

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Canadian-American author writing about local politics, personal finance, & dining in Albuquerque.

Albuquerque, NM
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