'What we know is that if you experience a substantial loss within 10 years before retirement, that can really delay or impact your retirement plans for the rest of your life,' Walser Wealth Management President Rebecca Walser told CBS News.
from a year ago. While inflation is usually associated with higher costs for groceries, gas and other living expenses, many Americans might also be wondering: Could inflation also break my nest egg?
"What we know is that if you experience a substantial loss within 10 years before retirement, that can really delay or impact your retirement plans for the rest of your life. It can have that big of an impact," Walser Wealth Management President Rebecca Walser told CBS News."So it is very important for people that are that close to retirement to really be cautious in this time where the market is coming back, where we do see inflation, we do see a lot of geopolitical unrest.
Traditionally, financial advisers have recommended that people assume an annual inflation rate of about 3% when planning for retirement. But with the U.S. now facing the highest inflation in decades, Walser said people should plan for higher rates. For employers, adjusting their annual compensation and benefits to account for surging inflation can be tricky.