Inflation Can Hurt Retirees Big Time. Here's How to Protect Yourself.

By Maurie Backman – Apr 2, 2026 at 12:36PM ESTKey PointsInflation can eat away at your buying power in the course of retirement.Delaying Social Security makes the program's cost-of-living adjustments more meaningful.Investing strategically gives you a leg up.You might think of inflation as a recent problem that's been plaguing consumers. But while inflation may be in the news a lot lately, the reality is that it's a perpetual problem -- and a potentially big one for retirees. When you're living on a fixed retirement income, even modest increases in everyday expenses could have a huge impact on your quality of life. But it's important to recognize that inflation is not going away, and that it's something you need to plan for. Here are some steps you can take to avoid getting hurt by inflation in retirement. Image source: Getty Images. 1.

Delay Social Security The nice thing about Social Security benefits is that they're eligible for an automatic cost-of-living adjustment (COLA) each year. But if you want to get more out of those COLAs, aim to delay your claim past full retirement age. If you were born in 1960 or later, full retirement age for Social Security is 67. But your benefits get an 8% increase for each year you wait, until you turn 70. The larger your benefits are to begin with, the more value those COLAs are apt to have through the years. 2. Keep part of your portfolio positioned for growth It's a good idea to scale back on stocks in retirement to manage your risk. But you shouldn't dump your stocks completely. Playing it too safe could put you at risk of losing out to inflation. Instead, aim to keep a portion of your portfolio invested in growth vehicles like individual stocks or ETFs (exchange-traded funds). Of course, you'll want to diversify the stock portion of your portfolio to manage your risk. But you may find that you're able to well outpace inflation with the right asset allocation. 3. Manage your spending and prepare to be flexible You can't control how rampant inflation is during your retirement. But during periods when costs seem to be skyrocketing, being careful and flexible could work to your advantage. If you're able to cut back on discretionary spending during periods of high inflation (especially if the stock market isn't doing particularly well), that should help preserve your savings. And if there are years when your portfolio gains outpace inflation to a large degree, don't automatically increase your spending. Instead, save the extra money for a rainy day. Inflation is one of the most persistent threats retirees face, but it doesn't have to derail your financial plans. With the right strategy, you can keep up with or beat inflation so you don't lose buying power as you get older.Read NextApr 2, 2026 •By Kailey Hagen, CFPHow Ages 60 to 63 Can Use the Super Catch-Up Contribution to Retire Faster in 2026Apr 2, 2026 •By Kailey Hagen, CFPWhat Happens to Your Social Security if Your Spouse Claims First in 2026?Apr 2, 2026 •By Maurie BackmanCan You Retire a Millionaire on a Middle-Class Salary? Here's What the Math Says in 2026.Apr 2, 2026 •By Christy BieberWhat Is a Good 401(k) Balance for Baby Boomers?Apr 2, 2026 •By Kailey Hagen, CFPStill Haven't Made Your 2025 IRA Contribution?

You Have Until April 15.Apr 2, 2026 •By Keith SpeightsHow to Check If You're Owed More Social Security Than You're Currently GettingAbout the AuthorMaurie Backman is a contributing Motley Fool retirement and Social Security expert with more than a decade of experience writing about personal finance, investing, and retirement planning. Maurie previously worked in finance analyzing distressed companies. She studied finance at Binghamton University.TMFBookNerd