Core Insights - Protecting retirement income from inflation is a significant concern for retirees, often more critical than the risk of running out of money [1] Group 1: Inflation and Retirement Income - Social Security provides cost-of-living adjustments (COLA), but most retirement income sources do not automatically adjust for inflation, which can diminish fixed-income streams over a retirement period of 20 to 30 years [2] - The COLA for 2026 is set at 2.8%, resulting in an estimated increase of $56 in the average monthly retirement payment, from $2,015 to $2,071 [5] Group 2: Strategies for Protecting Income - Claiming Social Security is essential as it is the only government-guaranteed, inflation-adjusted income stream available to Americans, forming the foundation for a retirement income strategy [6] - Allocating a portion of the investment portfolio to high-quality equities is recommended to maintain purchasing power over time [7] - Balancing equity growth with high-quality fixed income is crucial due to the volatility of equities; a mix of high-quality bonds should cover several years of annual spending needs for retirees [8]