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Finance Expert Suze Orman, AARP CEO Discuss What to Do About Inflation, Answer Listeners’ Questions
By Andrew Soergel, September 23, 2022 02:53 PM
En español | Americans are dealing with the most significant inflation in decades, making it a difficult time to be a retiree or someone saving for retirement. But we’re here to help. AARP hosted a free virtual event this week featuring our CEO, Jo Ann Jenkins, and personal finance expert Suze Orman. They answered listeners’ questions and talked through what inflation means for retirement savings, where to cut expenses and how to avoid making emotionally driven financial decisions.
“The pandemic has financially impacted people very differently. But right now, everyone is feeling the impact from inflation and supply chain issues,” Jenkins said, pointing to a recent AARP survey finding that more than 3 in 4 U.S. workers at least 30 years of age are worried about prices rising faster than their incomes. She also highlighted several state-specific polls AARP has conducted in states like Florida, Alaska and Arizona. Inflation is consistently among voters’ top concerns heading into the midterm elections.
But Orman noted Social Security benefits are pegged to a national inflation benchmark, which means their payments are likely to climb in the coming year. She also encouraged people a few years or more out from retirement to continue paying into 401(k)s, Roth IRAs and other savings accounts, despite ongoing market volatility. “As the markets go down, the dollars that you’re putting in buy more shares,” Orman explained. “Eventually, whether it’s a year, two, three from now, the markets will return up. And that will then be there for you when you retire.”
Watch a recording of the event.
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