Inflation doesn’t arrive with warning signs, it quietly alters what your money can do.

Over time, even modest increases in living costs can reduce the real value of your savings. For those approaching retirement, this matters more than ever.

A quiet but constant risk

Cash savings and term deposits are often seen as safe havens. They offer certainty, stability, and quick access to funds. In the short term, they play an important role.

But in the long term, the picture changes.

Term deposits currently return around 4%, a figure that may not keep pace with inflation. While your balance grows on paper, your buying power can shrink. The impact is subtle. You won’t

see it in red on your statement. But it’s there, in reduced travel, higher grocery bills, and rising medical costs.

Why inflation matters in retirement

Retirement isn’t a finish line, it’s a new phase that can last 20 to 40 years. If your plan relies heavily on cash based tools, it might not stretch as far as you expect.

The risk isn’t dramatic loss. It’s quiet erosion. It’s the slow realisation that your savings don’t go as far as they used to, and the possibility of having to scale back your lifestyle earlier than

planned.

“It’s not about chasing high returns,” says Dewald from Central Financial Planning. “It’s about building a strategy that holds up when life changes, whether gradually or suddenly.”

Rethinking your financial toolkit

Just as you wouldn’t use a butter knife to cut timber, a one-size-fits-all savings strategy doesn’t suit every stage of life.

Financial planners suggest looking at a mix of tools designed to protect against inflation:

• Growth assets like shares can help grow your wealth over time.
• Inflation-linked bonds adjust as prices rise, offering more security.
• Real assets, such as property or infrastructure, often provide income that rises with inflation.
• Diversified portfolios balance growth and security across market conditions.

The key is understanding how these tools work together, and how they align with your needs.

A plan that adjusts as life does.

Everyone’s future looks a little different. But a strong plan has a few things in common:

✔ It grows your savings in real terms, not just on paper

✔ It adapts to changes in markets, lifestyle, or health

✔ It supports the life you want now, and later

✔ It helps you leave a legacy, if that’s important to you

Financial freedom comes from clarity, not chance.

And it starts with asking the right questions.

• Are your current savings keeping pace with inflation?
• Is your retirement plan built to last 30+ years?
• Have you tested your strategy against rising costs?

If you’re not sure, or you’d like a second opinion, seeking professional advice can help bring peace of mind.

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This article was submitted by a contributing Financial Planner as part of The Central App’s sponsored advisor programme. Sponsored stories are reviewed to ensure they meet our standards of clarity, accuracy, and community value.