There has been a wave of forecasts suggesting the peak of inflation is now behind us. The implication is that we can now relax, and normal markets can resume. The truth is that investors, and particularly retired super fund members are not likely to relax, nor should they.
It would be great if we were certain that inflation would quickly return to the low-inflation environment, however historically it hasn’t usually been quick.
Retirees will suffer from an extended period of higher inflation, but they don’t need to accurately predict the path of inflation to manage the risk. What they should consider is to have (at least some of) their savings protected from inflation.
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