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Interest rates

A Note On Inflation

As the economy continues to recover from the pandemic's effects over the past year, you may have heard the term 'inflation' in the news. But don't let it frighten you! Inflation is beneficial because it indicates that the economy is recovering.

"Bouncing back" is exactly what it sounds like; stock and bond prices may experience short-term volatility as the market and economy transition to a new equilibrium. As always, we advise our Fortune 500 employees to maintain a focus on their long-term financial objectives rather than fretting over short-term commotion.

According to a recent study by the Employee Benefit Research Institute (EBRI), retirees are often more vulnerable to the effects of inflation due to their fixed incomes. The study found that the average retiree spent 2.4% more on goods and services in 2020 than they did in 2019, primarily due to higher costs for housing, food, and healthcare. This demonstrates the importance of considering inflation when planning for retirement, as it can significantly impact retirees' standard of living.

With that under consideration, it is prudent for our Fortune 500 clients to be knowledgeable about inflation and how it may affect their standard of living in your area. For our Fortune 500 clients interested in learning more, we have compiled a list of reputable resources that place inflation in its economic and historical context.

What is Inflation?

The Great Inflation: 1965-1982

We will continue to monitor economic conditions and keep our Fortune 500 clients informed of any necessary changes or adjustments. Most importantly, we want to remind our Fortune 500 clients not to let today's headlines distract them from their future objectives. Feel free to contact one of our retirement-focused advisors today if you are a Fortune 500 client with retirement-related questions or concerns.


Investing in retirement is like sailing a ship on the open sea. Just as a sailor must navigate changing weather patterns and shifting winds to reach their destination, retirees must navigate the unpredictable effects of inflation on their savings and standard of living. Like waves that may temporarily rock the ship, short-term fluctuations in the market or inflation rates should not deter retirees from their long-term objectives. Instead, they should adjust their sails and maintain a steady course towards their retirement goals, keeping a watchful eye on the horizon for any changes that may require course corrections.


This material was prepared by Broadridge Investor Communication Solutions, Inc., and does not necessarily represent the views of The Retirement Group or FSC Financial Corp. This information should not be construed as investment advice. Neither the named Representatives nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information or call 800-900-5867.

The Retirement Group is not affiliated with nor endorsed by your company. We are an independent financial advisory group that focuses on transition planning and lump sum distribution. Neither The Retirement Group or FSC Securities provide tax or legal advice. Please call our office at 800-900-5867 if you have additional questions or need help in the retirement planning process.

The Retirement Group is a Registered Investment Advisor not affiliated with FSC Securities and may be reached at www.theretirementgroup.com.

TRG Retirement Guide

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