The good news? With the right planning, you can ensure financial security for life and avoid the stress of outliving your savings. Here’s how:

1. Understanding how inflation affects your retirement 

Inflation eats away at the value of your money over time. What cost $100 today could cost $130 in a decade if inflation stays around 3% per year.

Key areas where inflation hits retirees hardest: 

• Housing: Property taxes, maintenance and rent increases don’t stop after retirement.
• Health care: Medicare premiums and out-of-pocket expenses rise annually.
• Groceries and utilities: Basic necessities cost more each year.

If your income remains the same while expenses grow, your savings won’t stretch as far as you originally planned.

2. Creating guaranteed lifetime income 

To ensure your savings last, incorporate guaranteed income sources that continue for life.

Best options for reliable retirement income: 

• Social Security: Delaying benefits until age 70 increases your monthly payments.
• Fixed index annuities, or FIAs: Provide steady, lifetime income with no market risk.
• Pensions (if available): If you have one, make sure you understand your payout options.

By locking in a portion of your income as guaranteed, you’ll always have a stable financial foundation, no matter what inflation does.

3. Adjusting your withdrawal strategy 

Many retirees withdraw too much too soon, leading to financial shortfalls later in life.

How to make your savings last: 

• Limit annual withdrawals to a sustainable rate (often 3 to 4% of your portfolio).
• Cut back during market downturns to avoid selling assets at a loss.
• Use annuities or CDs to reduce reliance on market-based investments.

The goal is consistent cash flow while keeping your savings intact for decades to come.

4. Keeping a portion of your savings liquid 

A strong retirement plan includes cash reserves to cover unexpected expenses without tapping into long-term savings.

Smart ways to maintain liquidity: 

• High-yield savings accounts — Easy access with competitive interest.
• Money market funds — Higher returns than traditional savings.
• Short-term CDs — Safe, predictable and penalty-free if laddered properly.

Having 12 to 24 months of cash on hand protects you from having to sell assets at a loss when unexpected expenses arise.

5. Planning for rising health care costs 

Medical expenses are one of the largest financial risks in retirement. Even with Medicare, out-of-pocket costs add up.

How to stay ahead of health care inflation: 

• Consider a health savings account, or HSA, if you still qualify before retirement.
• Look into long-term care insurance or hybrid policies to cover future needs.
• Regularly review your Medicare options to ensure you have the right coverage.

A solid health care plan prevents medical bills from draining your savings.

6. Lowering expenses without sacrificing quality of life

Reducing unnecessary spending can extend the life of your savings.

Easy cost-saving strategies for retirees: 

• Downsize or relocate — Consider moving to a smaller home or lower-cost area.
• Use senior discounts — Many stores, restaurants and service providers offer savings.
• Cut unnecessary subscriptions — Reevaluate streaming services, memberships and insurance policies.

Trimming expenses doesn’t mean cutting enjoyment — it means spending wisely.

7. Staying flexible with your financial plan 

Life changes, and so should your financial strategy. Reassess your retirement plan annually to adjust for new expenses, inflation and income changes.

Key areas to review each year: 

• Budget and spending habits.
• Social Security and annuity income.
• Health care needs and costs.
• Inflation’s impact on savings.

By staying proactive, you can keep your finances strong for the long haul.

Final thoughts: Retire with confidence 

The rising cost of living is a challenge, but you don’t have to outlive your money. With smart planning, guaranteed income strategies and careful spending, you can maintain financial security for decades to come.

Your next steps:

• Review your income and expenses today.
• Explore safe money strategies like fixed index annuities.
• Build an emergency fund for unexpected costs.
• Stay flexible and update your plan as needed.

Retirement should be about enjoying life, not worrying about money. With the right approach, you can secure a comfortable future — no matter how high prices rise.

Lyle Boss, The REAL BOSS Financial, endorsed by Glenn Beck as the premier retirement advisor for Utah and the Mountain West states. Boss Financial, 955 Chambers St., Suite 250, Ogden, UT 84403. Telephone: 801-475-9400.