Inflation is usually a bad thing for retirees. Pensioners spend a higher proportion of their income on food and energy. As this items will cost more in the future, their pension savings will buy relatively less. Hence the importance of anticipation by saving more during the active working life to compensate for the potential loss in purchasing power even if at that time interest rates might be low.
Even if at an individual level inflation has very different impacts, inflation is a sign of a growing economy and is globally positive if anticipated and undercontrol from central bank monetary policy. I kept in mind a quote from a banker colleague that is food for thought “I have met many people earning the same and spending the same. Still, with time, I have seen that some turned richer and some turned poorer”.
Think carefully about your personal situation and be prepared to make the right financial choices when taking into account the impact of higher or lower inflation.
(Article written with assistance from Richard Edwards)