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