The primary reason we expect to see more inflation in the future is the debasing of our currency, says Nicklaus Whitaker, financial planner with Tremont First Financial in Illinois. He believes most people think of inflation happening in the future but it's here today, noting that in the past 10 years, gas prices have gone up 100%.
With retirees on a fixed income, as inflation goes up each year, they're eroding their purchasing power, says Whitaker. Social security has a provision that increases income each year with the rate of inflation and consumers need to find a product that not only guarantees a payout but that also keeps up with inflation, he says.
Whitaker encourages his clients to plan accordingly. He advises those with a retirement plan that doesn't address the financial situation to seek a second opinion from a different financial planner.