The inflation bet you’re making for retirement — even if you don’t know it

Mark Hulbert
The inflation bet you’re making for retirement — even if you don’t know it

How worried should retirees be about future inflation? If upon retiring at age 66 you purchase an immediate annuity, and inflation averages 3%, the guaranteed income stream you will be receiving at age 90 will be worth half as much. Unless, that is, the annuity you purchase carries inflation protection, automatically increasing payouts by a cost-of-living adjustment.