Chapter 12. Inflation-protected annuities
“A nickel ain’t worth a dime anymore.”
What do you fear the most? Spiders, snakes, lawyers? Inflation is at the top of the list for many retirees. The fear that their money will not last as long as they do is of great concern to many older Americans. And to some extent, it is a realistic fear. Even relatively small inflation can eat away at the purchasing power of your investments and make your retirement much more challenging. In the 1990s, the rate of inflation was around 3%; in the 1980s, it was around 5%, and in the 1970s, it was around 7%. In 2007 the inflation rate was under 3%, yet the fear remains. Although inflation is not something to fear, it certainly is something to consider. ...