With prices rising at a record rate, many retirees or people planning to retire soon may be increasingly worried about what sort of lifestyle they can afford.
The good news is that the headline inflation number of 9.1% from the Bureau of Labor Statistics represents an average rise in consumer prices. Your own inflation rate may be different depending on what you buy and where you buy it.
“Inflation is represented as a single number, but in reality, it affects everyone differently depending on how they spend their money,” says Brian Walsh, Senior Manager of Financial Planning at SoFi in Grand Rapids, Michigan. “Generally, as you get older, you spend less on food, transportation, clothing and entertainment but spend more on healthcare, charitable contributions and services. Food, energy and transportation are significant drivers of inflation so that some retirees may be less affected by inflation compared to their working counterparts.”