Recently, inflation hit its highest since the eighties at around 9%. An inflation rate averaging 3% alone would double the cost of prices in 20 years. Imagine what prices could be at a higher rate.

Although inflation is expected to lower again, it leaves us asking how inflation can eat away at our investments, retirement savings and everyday life.

• When it comes to retirement savings and contributions, ensure that your monthly contributions increase annually with inflation to ensure your capital doesn’t lose value. If not, your capital could lose significant value over ten or twenty years, and you might have to replan your retirement income.
• Invest in funds with a history of inflation-beating returns plus more so your capital can work for you and grow over time.
• Your advisor is the best person to advise on your current investments and how they are doing against inflation.

The cost of living is constantly rising, especially with higher inflation, meaning our cash has less spending power. Everyday expenses such as groceries and fuel can significantly impact your budget, especially after a few months of inflation increase. Ideally, you would never budget your salary up to the max. Having disposable income or the remainder of your salary is vital in beating the rising cost of living and trimming some of the fat off your daily expenses.

Chat with your advisor to ensure that your investments and retirement savings are optimised to beat inflation and earn good returns. [email protected]

Please note that the above is for education purposes only and does not constitute advice. You should always contact your Acuma advisor for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken as a result of reading the above.