How Does National Debt impact Retirees?
How does our country’s huge debt problem affect retires with no debt and a balanced portfolio?? Other than higher taxes and inflation going forward what might we expect?
Terry Says
I think you can expect the government to eventually “print” more money to pay interest on the debt. Of course, that is inflation — and it will impact the spending power of your savings. At only 3 percent inflation, the value of your retirement savings will be cut in half in just 25 years!
The stock market has beat inflation over the long run (at least 20 years). And some other investments are a hedge against inflation, such as gold stocks or mutual funds. But you’re right: this huge national debt is definitely going to impact retirees on fixed incomes. That money won’t be worth much!
