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If you’re worried about inflation and how it might potentially wreck your retirement, you’re not alone. In fact, a recent report from Gallup showed that as of April, inflation was the most named financial problem facing families — cited by 29% of respondents. That’s down a lot from 41% in 2024, but it’s still the top concern, ahead of housing costs and a lack of money.It’s a worthy concern. Consider this: Prices have risen by about 288% since 1980, meaning that what cost you $1 in 1980 would cost you around $3.88 in 2025. If inflation stays around 3%, which is roughly its long-term average, it can cut the purchasing power of your portfolio in half within 25 years. Ouch!Here, then, are some ways to protect your retirement — which could last 20 or 30 years or more — from inflation.1. Have an emergency fundFirst, be sure to have an emergency fund that can carry you through at least a few months of non-employment. Even if you remain employed, you might have a major unexpected expense rear its ugly head, such as a big car repair — and you don’t want to remove any money from your retirement accounts, where those dollars are busy growing for you.2. Aim high with your retirement goalsNext, consider increasing the size of the nest egg you’re aiming to build. Remember that if a million dollars seems sufficient now, if you’re retiring in 20 years, a million dollars won’t be what it used to be. For some people, $2 million might be a better goal. Take some time to figure out how much you might need to retire with in the future.That $2 million goal can be attainable if you sock money away aggressively and have enough years ahead of you.Source: Calculations by author.3. Consider delaying retirement a bitOne way to beef up your retirement nest egg is to delay retiring for a few years. Check out the table above. If you can get to $741,344 in 20 years, delaying retirement by five more years while continuing to save and invest might get you to nearly $1.2 million. This strategy also means a shorter retirement, which can help you not run out of money.4. Include dividend payers in your portfolioInvesting in dividend-paying stocks can be a powerful move. Healthy and growing dividend-paying companies tend to increase their payouts, often annually, and those increases can help you keep up with inflation. Their stock prices should appreciate over time as well. It’s a win-win!You don’t even have to become a stock market genius — as you can just opt for one or more dividend-focused exchange-traded funds (ETFs), which make dividend investing easy.5. Consider I-bondsYou might also consider investing in I-bonds, which feature inflation-linked interest rates. Treasury Inflation-Protected Securities, or “TIPS,” are another possibility, as they feature inflation adjustments. These are not likely to be big growe …
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