Moneywise

Sun, Jun 15, 2025, 5:11 AM7 min read

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Most retirees worry about running out of money because of spiralling inflation and unexpected medical costs as they age.

However, after studying the spending patterns of five million retirees, JPMorgan has uncovered something surprising: Some of these concerns might be overblown.

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Perhaps the biggest shocker is that some retirees might not need as much savings as they believe to retire comfortably. Here are three reasons why.

Most financial planners assume your retirement spending will rise annually with inflation. Historically, inflation averaged 2.9% from 1982 to 2024, according to JPMorgan.

But that’s a general figure. Retirees tend to shift their spending as they age — dropping more on healthcare but less on clothes, dining out and commuting.

As a result, some retirees with modest wealth often see their overall expenses gradually decline over time. Their inflation experience differs from those in their peak earning years.

“Looking across the range of households in our dataset, our key finding is that people generally spend less than expected,” notes a previous JPMorgan report.

“For partially and fully retired households with $250,000 to $750,000 in investable assets, the annual inflation-adjusted change in spending is just 1.65%.”

Still, inflation remains a constant reality — especially over a retirement that could last decades. That’s why it’s important to protect your purchasing power. One proven strategy is investing in gold, which has historically served as a hedge against inflation and currency erosion.

Even better, the price of gold has jumped by more than 40% since 2023. JPMorgan projects that it will hit the $4,000 mark by 2026.

If you buy into gold’s long-term value, you don’t have to find and store the bars yourself. Instead, you could opt for a gold IRA to hedge against inflation by investing directly in precious metals.

One way to invest in gold that can provide tax advantages is to open a gold IRA with the help of American Hartford Gold.

Gold IRAs combine the tax benefits of an IRA with the inflation-resistant nature of investing in gold. This can make them an attractive option for those looking to potentially hedge their retirement against economic uncertainties.