How Inflation Can Affect Lockheed Martin Retirees

Retirement can seem like the pot of gold at the end of the rainbow, but this pot of gold is real! It’s a pot that you’ve tended to over the years, slowly but surely filling it up with your personal savings and contributions to your Lockheed Martin 401(k). This is the pot of gold that’s supposed to supplement your pension throughout retirement.  But what happens to your total retirement income, pension, and supplements, when inflation occurs? That’s what we’ll examine today. 

Inflation by definition is a general increase in prices and fall in the purchasing value of money, according to the Oxford Languages, or the decline of purchasing power of a given currency over time, according to Investopedia. Inflation affects your retirement income by increasing the future costs of goods and services, which then reduces the future purchasing power of your income. Even a low inflation rate can have a significant impact on your purchasing power. Take a look at the chart below to see how inflation at 2%, 3% and 4% can affect $50,000.

There’s good news and bad news. Let’s get the bad news out of the way first.  The bad news is that your Lockheed Martin pension is a set dollar amount, and it does not increase over time. So, a pension amount of $50,000 today is still $50,000 in 25 years, but that $50,000 doesn’t go as far as it did 25 years earlier, as you can see from the chart above. The good news is that your supplemental pot of gold, your personal savings, investments, and 401(k), do increase if you have them invested properly.  Investments like growth-oriented stocks, mutual funds or ETFs, Treasury inflation-protected securities (TIPS), real estate securities, and commodities are some types that may need to be considered in your portfolio. 

To know if any of these types of investments are right for you, you should speak to one of our Lockheed Martin specialists, who can examine your overall portfolio and analyze your personal situation then make recommendations that will help you fight inflation and keep your pot of gold intact.   Call us today at 817-210-3444 or click HERE to book a complimentary consultation!


Want to get better educated on Lockheed Martin retirement strategies? Then download our free report, Retire with Confidence: Top 4 Things You Can Do to Maximize your Lockheed Retirement.

Be sure and check back next week for more valuable Lockheed Martin information. Cheers!