#1 Strategy to Beat Inflation in Retirement

Laddering Out With Annuities Works to Manage Inflation in Retirement

When we sit down with clients like you, one concern consistently rises to the top is inflation. And it’s not just theoretical. Even if you’ve saved enough to generate $100,000 in annual retirement income today in 20 to 30 years from now, that same $100,000 could feel more like $50,000. People are living well into their 90s and many even past 100, so we simply can’t afford to ignore how inflation chips away at your income over time.

We want to walk you through the most common strategies retirees use to fight inflation, and more importantly, how we approach it differently with something called the “laddering out” strategy.

The Most Common Strategies for Beating Inflation (and Why They’re Risky)

1. Investing to Beat Inflation
   You’ve probably heard the classic advice: keep your money in mutual funds or index funds to “outpace” inflation. That can work, while you’re still working. But once you retire and start withdrawing from your portfolio, the market’s volatility becomes a real danger. If you’re pulling money out during a downturn, it’s called a sequence of returns risk, and it can quickly derail your plan. We’ve seen cases where two retirees with identical portfolios ended up with dramatically different outcomes, simply based on when they started withdrawals.
2. Locking Into CDs, T-Bills, or MYGAs
   Today’s rates might look attractive—4% to 5% feels pretty good, right? But history tells us those rates are temporary. Over the past two decades, we’ve seen prolonged periods where CD and MYGA rates fell below 2%. And unlike during your working years, retirees can’t just “wait it out.” You need income no matter what the rates are doing. Locking into a low-yield product during a downturn can mean tough decisions later.
3. Income Annuities with Flat Payments
   Fixed income annuities offer contractual guarantees, some even 6% to 15% for life. That sounds great at first until you realize most are flat. Your $100,000 income today won’t grow over time. And thanks to inflation, that income could be worth half as much in 20 years.

What We Recommend: The Laddering Out Strategy

Here’s where we take a different path. We use a concept called laddering out with hybrid pension annuities. It’s not the same as staggering CDs or buying annuities over time (that’s called laddering in). Laddering out means we split one deposit into multiple annuity contracts now, each with its own start date for income, say at age 62, 65, and 70. This way, you enjoy increasing income as you age, just like delaying Social Security boosts your benefits.

Each layer gives you a contractual payout of 10–15% or more, for life. And because these are hybrid pensions, you still control the principal, you can change your mind, and your beneficiaries get the remaining value if anything happens to you.

Then We Plan for Inflation in Your 70s, 80s, and Beyond

Once we’ve built that strong foundation of guaranteed income for your early retirement years, we start looking at laddering in smaller annuities later—maybe $25,000 to $100,000 chunks at a time. These later contracts (in your 70s, 80s, or 90s) can offer payouts of 20–35% or more. That’s a powerful inflation hedge when you’re most vulnerable and most advisors won’t tell you about it because frankly, smaller contracts take more work. But we’re here to do it right, not easy.

Why Most Advisors Don’t Talk About This

Let’s be honest—this kind of planning takes more time. Each laddered contract requires a separate application. Many advisors just go for the big sale: one big annuity, one big commission. But that can leave you stuck with either too little income early or no way to boost it later. We believe you deserve more flexibility, more control, and a real plan for inflation that works now and decades from now.

Let’s Build a Plan That’s Built to Last

If you’re wondering how much income you could generate with a laddered hybrid pension strategy. Or how to protect yourself from inflation past age 90, we’d love to show you your numbers. Let’s take the guesswork out of retirement and build something you can rely on. Give us a call, or schedule a time to talk. We’re here to help you retire with confidence—and stay that way.