By Financial Desk — January 25, 2026
As inflation continues to pressure the budgets of retirees and soon-to-be retirees, financial experts are warning that traditional retirement strategies may not be enough to preserve purchasing power. Persistent price increases in essentials such as groceries, healthcare, and housing have left many Americans concerned that their savings could fall short in retirement.
However, financial planners say there are two key strategies retirees can adopt now to help protect their nest egg and maintain financial stability in an inflationary environment.
1. Keep Investments Positioned for Growth
While it may be tempting to move heavily into cash or ultra-safe investments as retirement nears, experts say doing so could be counterproductive. “Cash loses value during inflation,” says Sarah Mitchell, a certified financial planner. “A balanced portfolio with exposure to growth assets can help retirees preserve and even grow their purchasing power over time.”
Investment options that can help hedge against inflation include:
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Dividend-paying stocks: Companies that regularly increase dividends can provide a steady income stream while offering potential for capital appreciation.
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Real Estate Investment Trusts (REITs): Property-linked investments often rise with rents and property values, providing an inflation-resistant income source.
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Treasury Inflation-Protected Securities (TIPS): These government-backed bonds adjust with inflation, helping protect the real value of savings.
Financial advisors emphasize diversification, blending equities, bonds, and inflation-linked assets to balance growth and risk. Over the long term, such a strategy can help retirees maintain their standard of living despite rising costs.
2. Delay Social Security to Maximize Inflation-Resistant Income
Social Security remains a critical source of guaranteed income for many retirees. Experts say the timing of claims can have a substantial impact on both the total benefit and its ability to keep pace with inflation.
Under current rules, beneficiaries can begin receiving Social Security as early as age 62. However, delaying benefits past full retirement age (typically 66 to 67, depending on birth year) up to age 70 increases monthly payments by about 8% per year delayed.
“The bigger your Social Security benefit at the start, the more it can grow through annual cost-of-living adjustments,” explains James Chen, a retirement strategist. “Delaying benefits isn’t just about more money upfront — it’s about creating an income source that better withstands inflation over decades.”
Additional Steps Retirees Can Take
While these two moves are among the most impactful, financial experts advise retirees to also:
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Regularly review budgets and spending projections to ensure savings align with rising costs.
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Diversify income sources beyond Social Security, including part-time work, rental income, or annuities with inflation adjustments.
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Plan for healthcare and long-term care expenses, which often rise faster than general inflation.
Many planners recommend stress-testing retirement strategies against various inflation scenarios to develop a resilient financial plan tailored to individual needs.
Bottom Line
Inflation may be a persistent challenge, but retirees aren’t powerless. By maintaining a diversified investment strategy and thoughtfully timing Social Security claims, retirees can create a financial buffer against rising costs. Experts stress that proactive planning now is key to safeguarding purchasing power and ensuring a secure retirement in the years ahead.
