‘Public enemy No. 1 in retirement’ — and how to prepare for it ahead of time

Roughly 1 in 4 Americans say this is a ‘burning’ question they have about retirement: “what if inflation rises when I’m retired?” according to Northwestern Mutual’s 2026 Planning & Progress Study, which explored U.S. adults’ attitudes and behaviors toward money.

They’re right to worry, pros say. “Inflation can become public enemy No. 1 in retirement. $1 can turn into 50 cents quickly. While you can’t control prices and inflation, retirees can utilize strategies in order to protect themselves,” says Steve Azoury, chartered financial consultant and owner of Azoury Financial.

So, how do you prepare? For some, it might help to consult a financial planner — you can use this free tool that can match you to a fiduciary adviser, from our ad partner SmartAsset, as well as resources like NAPFA and the CFP Board — but you can also do a lot on your own. Here‘s what 10 financial advisers and certified financial planners say you should do to prepare for inflation when you are retired.

Start your planning now — not after you’ve already retired.

Most pros we talked to said the best way to plan for inflation in retirement is to start your planning well ahead of when you actually want to retire. “Early planning is always the best way to prepare, which is the combination of future income and expense projections, estimated portfolio growth rates and tax estimations. Proper coordination of these items can limit the overall burden of inflation in retirement because it’s already been accounted for,” says Kaylee McClellan, CFP and financial adviser at Innovative Planning Group.

Make sure you have multiple income streams that adjust with inflation or give you flexibility to adapt.

“You can prepare for it better than most people realize, but it requires planning while you’re still working, not after you’ve already retired. The key is building multiple income streams that either adjust with inflation automatically or give you flexibility to adapt,” says Josh Katz, CPA and founder of Universal Tax Professionals.

Work longer.

“Build equity exposure into your retirement portfolio. Stocks have historically been the best long-term hedge against inflation even though they’re volatile in the short run. And honestly, one of the best hedges is working a few extra years if you can. The combination of more savings, delayed Social Security and a shorter retirement period to fund makes you much more resilient to whatever inflation does,” Katz says.

Diversify your portfolio.

“Consider maintaining a diversified portfolio that includes assets with long-term growth potential, rather than relying too heavily on cash or low-yield holdings,” says Sam Merrick, financial planner at Horizon Financial Services. “In some cases, it may also make sense to consider tools such as Treasury Inflation-Protected Securities, or TIPS, as part of a broader strategy to help address inflation risk.”

Consider investments that keep pace with inflation.

“Inflation is basically things costing more over time. If your groceries cost more, if your utilities cost more, if your trips to see your grandkids cost more, then you may have to dip deeper into your retirement assets than you originally planned or cut back on your spending. In retirement, I’ve yet to find anyone who wants to cut back on spending, so making your retirement assets do more for you is key,” says Eric Mangold, certified wealth strategist and founder of Argosy Wealth Management.

That may mean certain types of investments. “Consider allocating to investments in a portfolio that do a decent job keeping up with inflation, especially over the long run. Note, investments that do well when considering inflation aren’t always the same assets that do well when ignoring inflation, which is why an efficient retirement portfolio could look a little different than an efficient accumulation portfolio,” says David Blanchett, PhD, CFA, CFP and head of retirement research at Prudential.

Make adjustments when you need to.

“A 60/40 portfolio may have to be adjusted for more growth to offset the impacts of inflation. For security, investing in CDs or fixed accounts can help, but for others, it may not keep up with the raising prices,” says Azoury.

Consider delaying Social Security.

“Consider delayed claiming of Social Security retirement benefits. Social Security retirement benefits offer lifetime income explicitly linked to inflation,” says Blanchett.

Jon Beyrer, CFP, senior financial adviser and principal at Blankinship & Foster LLC, says that delaying benefits from Social Security can actively protect against high inflation before it happens. “An important way to protect against high future inflation is with Social Security delayed retirement credits. That is, delaying the start of Social Security benefits so you will have a higher inflation-linked income later in life.”

Create practical projections for the years to come.

“We create multiyear projections of their expenses in retirement, and we itemize areas where they can influence the cost to them. Examples are: income taxes, healthcare, long term care, housing,” says Beyrer.

Breanna Stott, CFP & CEO of Finwell, Inc., agrees, and even models out different scenarios for clients to truly put their financial plans to the test. “We stress test our clients’ plan to include an increased inflation assumption, lower market return assumptions, a longer lifespan and lower Social Security benefits. If our clients’ plan is still within a successful range, we consider it a success.”

Flexibility and growth in your plan is key.

“The people who handle it best have flexibility. They have assets that can grow, income that can adjust and a plan that protects their purchasing power over time. You can’t predict inflation, but you can absolutely prepare for it,” says Pamela Garret, estate planning attorney and wealth strategist at The Law Mother.

Garret also notes not to count out growth in your retirement years. “First, keep growth in the plan. Even in retirement, part of your money needs to stay invested in assets that can outpace inflation over time. Second, build multiple income streams. Relying on just Social Security or a pension creates risk. Flexibility matters. Third, be intentional about taxes and withdrawals. Keeping more of what you earn becomes even more important when costs are rising,” she notes.

Save money where it makes sense.

“Most people fail to consider their own physical aging and various alternative living arrangements that can help them live better and longer. The amount of financial resources needed to stay in your home until your last breath depends on the maintenance and upkeep demands of the home itself,” says Mary Brimer, chartered life underwriter, chartered financial consultant and financial planner at Ginger Green Financial.

“Many homeowners fail to take advantage of downsizing (house size and/or expense) when opportunities present themselves. Multigenerational living arrangements and various types of retirement communities offer significant benefits in the ‘slow-go’ and ‘no-go’ years of retirement. These benefits include financial, social and safety.”

“The goal isn’t just to retire. It’s to keep your lifestyle once you get there. Inflation is one of the biggest threats to that, but with the right plan, it’s manageable,” Garret says.

Work with an adviser or a financial professional that you trust

“The best way to prepare for retirement, with different inflation projections, is to run a financial plan and work with a certified financial planner,” Stott says.

“We say DIY projects are for the weekends — don’t DIY your retirement. Consult with a trusted financial professional who can help you with a custom retirement income strategy that addresses inflation as well as things like taxes, healthcare, etc.,” Mangold says. You can use this free tool that can match you to a fiduciary adviser, from our ad partner SmartAsset, as well as resources like NAPFA and the CFP Board.