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Inflation delaying retirement plans? Try these budgeting tips

Posted at 6:40 AM, Jul 19, 2022
and last updated 2022-07-19 09:40:35-04

A recent survey by BMO Harris Bank found a quarter of Americans are delaying their retirement plans because of inflation.

Brendon Blake with AARP Arizona says it's an issue they're seeing firsthand. They're also noticing some are still retiring, but with not as much money as they thought they would have.

"If you were 60 five years ago and you're retiring at 65, the inflation rates then were a lot different than they are now," Blake said. "And maybe what you were planning to have in a monthly income based on what you're now paying whether it be housing or groceries or gas or any of those normal things you pay for on a monthly basis, your money is not going to be able to stretch as far as it was five years ago."

Blake says if you are approaching retirement, narrow down your budget and make sure you know how much you're spending on a month-to-month basis.

AARP has a retirement calculator that can help with that.

He says the average person 65 and older takes four and half prescription medications and it costs them thousands of dollars every year. He recommends looking at programs like GoodRx which may find discounts for your medication.

"With inflation and high cost of prescription drugs and high cost of rent or a home, people are getting squeezed and seniors on a fixed income especially if they're only on social security it's only getting harder and harder to make their way," Blake said.

For additional tips on how to budget, click on the ABC15 Smart Shopper page.