Retirement Savings: Make Them Last Longer With Inflation-Protected Investments

Outlook Money

Retirement

Retirement should be free from the tensions of financial burdens. This can be achieved by making the right investment choices which can protect savings from rising inflation.

Retirement

Inflation-Proof retirement corpus

For one to create an inflation-proof retirement corpus, it is important to determine financial needs post-retirement, calculate the lump sum to be received on retirement and select those asset classes which provide inflation-adjusted returns. One should start early to benefit from the compounding of returns on investment. 

Inflation

How inflation poses a problem 

Savings at the time of retirement may not be adequate for the long term. Retirement corpus should be able to accommodate such cost escalations and keep up with your standard of living.

Inflation

Inflation-Protected Investments

Gold: Investing in gold can be very useful against inflation. Its value tends to increase with inflation. Investing in gold ETFs provides both liquidity and stability.

Equity:

Investing in equities helps one in generating higher long-term returns and can generally overpower inflation.

Active Equity Funds

Real Estate Investment Trusts or REITs:

REITs offer investors a way to gain exposure to real estate without the complexities of property management. Their returns are often linked to rental income and have the potential to increase with inflation, making them a reliable addition to a retirement portfolio.

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