If there’s one financial truth that retirees can’t afford to ignore, it’s this: inflation doesn’t stop when you retire. In fact, it often hits harder. Whether you’re already retired or preparing to leave the workforce, building a stream of inflation-protected income is critical to maintaining your lifestyle and purchasing power over the next 20–30 years.
At Advanced Capital Management in St. Petersburg, we help clients plan not only for how much income they need in retirement — but also how to ensure that income can keep up with inflation.
Why Inflation-Protected Income Matters
Inflation quietly erodes the value of your money over time. A dollar today won’t buy the same basket of groceries 10 or 20 years from now. Even “moderate” inflation of 3% annually can cut your purchasing power in half over a 25-year retirement. And we’ve seen firsthand how recent inflation spikes can quickly strain a fixed retirement income.
If your retirement income isn’t designed to grow alongside prices, you may be forced to spend less — or risk running out of money.
Key Sources of Inflation-Protected Income
Here are some of the most effective tools for creating income that can rise over time:
1. Social Security with Delayed Filing
Social Security is one of the few income sources that offers automatic cost-of-living adjustments (COLAs). By delaying benefits until age 70, you not only maximize your monthly payment — you also receive larger COLA increases based on that higher base amount.
2. Treasury Inflation-Protected Securities (TIPS)
TIPS are government bonds specifically indexed to inflation. Their principal value adjusts with the Consumer Price Index (CPI), making them a direct hedge against rising prices.
3. Inflation-Adjusted Annuities
Certain annuities are structured to provide annual income increases, either tied to inflation or based on a fixed percentage. These tools combine the reliability of guaranteed lifetime income with the ability to grow over time.
4. Dividend-Growing Stocks
While not guaranteed, some companies have strong histories of increasing dividends over time. As part of a diversified income strategy, these stocks can offer a growing cash flow to help offset inflation — though they come with market risk.
The Risk of Ignoring Inflation
Ignoring inflation in your retirement plan is like building a house on sand. It may look solid now, but over time, erosion can leave your finances vulnerable. Without inflation-protected income, even the most well-funded retirement portfolios can fall short.
A study by David Blanchett, PhD, CFA, found that most retirees underestimate how much income they’ll need later in life, especially for healthcare and long-term care. Inflation only amplifies that gap.
How We Help at Advanced Capital Management
We don’t just aim to generate income — we design resilient retirement income plans that grow with you. Our advisors take the time to assess your needs, risk tolerance, and lifestyle goals, then incorporate inflation-protection strategies into your plan.
Whether through annuities, Social Security maximization, or TIPS ladders, we help you stay one step ahead of rising costs — without sacrificing peace of mind.
Let’s build your inflation-proof retirement income plan today.
Call us at (727) 542-7659 or schedule online at www.advancedcapitalmanagement.net
