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Bidenflation Making It Harder to Retire

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In the NY Post, E.J. Antoni explains how the inflation of the Biden era is making it harder for Americans to retire. He writes:

When he [Biden] took office, the economy was growing at a $1.5 trillion annualized rate and recovering an average of a half- million jobs per month.

Inflation was a mere 1.4%, lower than the Federal Reserve’s 2% target.

Just 18 months later, Biden managed to run up inflation to 40-year highs, with prices rising in a single month about as fast as they increased in the entire year before he took office.

Simultaneously, the economy contracted for two consecutive quarters — what we used to call a recession.

While inflation has come down from that breakneck pace, it is reaccelerating, and economic growth has been anemic.

The labor market is still missing between 4.5 million and 5.5 million workers, leaving employment far below its pre-pandemic trend.

Accounting for all these absent workers yields an unemployment rate that’s more than 6%.

It’s the persistent inflation really hurting those who were hoping to retire.

If you were a prospective retiree, planning to leave work with $1 million in savings and investments, you’ve had to radically adjust that calculus because prices have risen about 17% on average since Biden took office.

That means you need an extra $170,000 in savings to have the same real value in your nest egg.

But that assumes inflation will return to its low, pre-Biden level — which won’t happen any time soon: Government spending, borrowing and money-creating remain elevated.

Action Line: If you want to retire successfully, you need to save til it hurts. Then build a strong plan with a professional and stick to it. When you’re ready to get started, let’s talk.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.
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