What the economy predicts for retirement in the next 10 years
You don’t have to be an Economist to understand that high prices for food, utilities and more. But economic forecasts can provide insight into where retirees can expect their wallets to last — and what they can do to help preserve their nest eggs.
Read on for four macro trends to expect over the next few years.
1. Sticky rise
While inflation has slowed significantly from the Peak in 2022, prices remain high for certain goods and services. Many economists predict that in 2026 We will continue to see “sticky inflation,” which is the term used for inflation – often in certain categories of consumption – that continues above the goal.
Retirees can help protect their portfolios from inflation by shifting more money into inflation-protected assets, such as mortgage-backed securities (tips) and real estate. Government bond notes adjust their principal value based on the consumer price index, an index that measures inflation. You can get exposure to real estate without buying the property yourself through Real Estate Investment Trusts (REITS), which are companies that own income-producing properties.
Save Smarter: manage your money with Rocket Mones Majethi app, one of the favorite coins
2: Very high prices
Interest rates, which are how much it costs to borrow money, could remain high for the next few years.
Treasury bills, corporate bonds and high savings accounts (Hysas) are more attractive in cycles with high interest rates. Investors can also move some of their capital from savings accounts to invest in derivative products with longer maturities to lock in higher interest rates.
Gold Offer: Sign up with American Hartford Gold today and get a FREE investor kit, plus get up to $20,000 in free silver on qualifying purchases
3: Labor shortages and the rise of the gig economy
Many economists expect labor shortages and the rise of the gig economy, which can include side hustlers and temporary jobs, to continue. That leaves an opportunity for retirement, especially for those who can do gigs or part-time work in specialty areas.
If you’re not quite ready for retirement, you might want to check out low side loops. That way, you are better prepared when you leave your traditional job behind.
Extra money: See how you can get up to $1,000 in stock when you fund a new sofi inva sofi account
4. The future of public safety
Some economists have been skeptical of the sustainability of social security for a number of reasons, including people living longer than before and transplants.
Retirees can benefit from having a large retirement savings plan so they don’t have to rely on social security entirely. That can include money set aside for employer-sponsored retirement savings accounts, individual retirement accounts (IRAs), tax-deferred accounts, pensions and more.
