Are you worried that your investment values won’t keep up with inflation when it comes time to retire? With the Consumer Price Index rising to almost 7% in recent months, this concern is becoming even more real for many people who will soon retire or have already retired.

You need to carefully consider your own situation when you look at how to invest, to ensure your purchasing power is not eroded by inflation over time. 

Investing in gold is a safe bet for future retirees and provides an opportunity to protect your portfolio against inflation. It’s a good idea to have a look at the best gold IRA companies for more advice on how to invest.  

Explaining Inflation

Inflation is the rate at which the value of a currency decreases and the price of food and other goods and services increases. It’s a measure of how much less your currency buys you every year. Inflation ultimately reduces the buying power of your investments. 

Why You Should Diversify With Gold

There are several reasons to diversify your retirement investment portfolio with a gold IRA:

  • The value of gold has increased considerably over the last two years and is still increasing. 
  • Your investment in gold can protect you against increases in inflation. Food prices and other costs are increasing, and you need to be able to keep up when you retire. 
  • There is a high demand for gold, which further increases its value. 

Consider Other Options

Other, more traditional investments can also offer you some protection against inflation, including the following: 


Annuities are a type of retirement insurance that will give you a fixed monthly payment at the end of your investment term. Fixed annuities are usually the best option, as the fees are lower and they offer more security.

Treasury Inflation-Protected Securities (TIPS)

These Treasury bonds are a low-risk investment since the government backs them. TIPS can protect your buying power from declining. The price of these securities is adjusted so that they maintain their value as inflation increases. You will never receive less than the original amount you invested. 

The interest for TIPS is based on a fixed rate. You will receive the interest on your investment every six months. You will receive higher interest if inflation rises, but your interest will be lower in the case of deflation. The maturities for TIPS are five, 10 or 30 years and you can buy them through the Treasury-Direct system. 

It’s also possible to buy them through a TIPS mutual fund, but you will have to pay management fees. 

Other Ways To Beat Inflation When You Retire

There are some other practical ways in which you can boost your retirement savings and beat inflation. 

Become Self-Sufficient

  • Rent out your house, or at least part of it. If you’re in a good location, you should be able to raise the rent over time, without losing tenants. 
  • If you’re worried about inflation soaring, buy everything you need now, if you can afford to do so. You can buy a stockpile of durable goods if you think prices will increase in the near future.  
  • To protect yourself from rising food prices, consider growing your own vegetables and get some chickens, if you can. 
  • If you don’t want to be dependent on increasing maintenance, insurance and gas costs, live in a place where you can walk or use public transport. 

Final Thoughts

One of the best things you can do as part of your retirement planning is to diversify your portfolio. A combination of inflation-beating investments, as well as lifestyle changes that will allow you to beat inflation in the long run, will be your best strategy.