Fixed incomes lose purchasing power over time with inflation — worth building in some protection rather than assuming today's budget holds steady.
Practical steps
- Review your budget annually against actual cost changes, not just assumptions
- Understand which income sources adjust for inflation (Social Security has a cost-of-living adjustment) and which don't
- Build a buffer into your emergency fund specifically for rising costs
This article is general information, not financial or legal advice. Rules, costs, and program details vary and change over time — confirm current specifics with a licensed financial advisor or elder law attorney before making a decision.