A recent analysis by the Senate Joint Economic Committee (JEC) has revealed that Americans need an extra $11,434 in annual income on average to maintain the same standard of living they enjoyed in January 2021. This figure was determined based on data from the Consumer Price Index and the Consumer Expenditure Survey, which measure the impact of inflation on consumers and the purchases they make. While the $11,434 figure is an average, it varies by state. For example, in Pennsylvania, it is $9,511 and in New Jersey, it is $11,301, but it can be as much as $14,995.
The JEC’s analysis drives home the point that Crash Proof Retirement has been making since the post-COVID economic recovery began, that although government figures show calming inflation and rising incomes, millions of Americans are still struggling to afford the goods and services they need to enjoy a comfortable life. The JEC analysis is not the only study that paints a grim picture of the impact of inflation on everyday Americans. A separate survey by consumer financial services company Bankrate showed that two-thirds of Americans, despite receiving pay increases in the past year, still feel that the additional income has not allowed them to keep up with inflation.
Those saving for retirement and those who are currently retired are especially hard-hit by inflation. Finding an additional $952 or more every month to meet their expenses isn’t easy for anyone, and retirees living on a fixed income might have to go back to work if they hope to make ends meet. For retirement savers, every dollar they spend on living expenses is one dollar they can’t put into their retirement accounts. For those nearing retirement, this can mean waiting longer to retire than they expected or simply accepting a lower standard of living in retirement.
Fighting Inflation with The Exclusive Crash Proof Retirement System
Although inflation continues to be an issue for retirees and those saving for retirement, there is something you can do to ensure you have enough income to cover unexpected expenses. It starts with taking your nest egg out of risky, securities-based financial vehicles like stocks, bonds, and mutual funds, and putting it into guaranteed safe financial vehicles like the ones used in the Proprietary Crash Proof Retirement System.
Every Crash Proof Retirement System comes with built-in inflation fighters that allow consumers to withdraw funds to cover unexpected expenses like inflation without depleting their nest egg. Because each Crash Proof Retirement System contains multiple vehicles that work together in harmony, your money continues to grow even when you take out a portion of it to beat inflation.
The amount of additional income you can generate varies, but it can increase your income by as much as 35% each year with no penalties or fees. If you can meet your expenses without withdrawing any funds, you don’t have to; you can start, stop, or change the amount of your withdrawals as your situation changes. With inflation fighters, it’s simple to stay ahead of inflation by 1-2% without ever putting a dent in your retirement savings.
In addition to its built-in inflation fighters, the Crash Proof Retirement System imparts many benefits that are perfect for those in or near retirement. First, your System is guaranteed to protect your principal during a market downturn or crash. Unlike securities-based investments, the Crash Proof Retirement System will not lose a penny of your principal, regardless of what happens with the stock market. It also has the potential to credit interest at rates similar to stocks, bonds, and mutual funds without any of the risks or fees associated with those investments. Once that interest is credited, it becomes part of your principal and cannot be lost no matter how the economy is performing.
With inflation still running out of control, retirees can’t afford to lose any value in their investments. The JEC analysis highlights the need for safe investments that protect the principal and offer the flexibility to withdraw extra money when it is needed without having to worry about fees or penalties. According to recent data, you will need an extra $11,434 to cover your expenses compared to January 2021; a year from now, that number could be even higher! If you are in or near retirement, you owe it to yourself to find out more about all the benefits offered by the Crash Proof Retirement System.
Get in touch with our team of licensed retirement educators by calling 1-800-722-9728 for your free financial checkup. We will be happy to answer any questions you may have and tell you about investments outside the securities industry that will protect your principal and give you extra income when you need it. You can also reserve your seat at our next educational event. We can help you develop a secure retirement plan in Bucks County, PA, or anywhere else nearby.