The 2021 inflation rate so far is now 6.2%. With a projected 2022 federal pay raise of 2.7%, and a COLA of 5.9%, purchasing power is declining fast.
TSP core funds are bouncing back. One fund is up more than 6% so far this month. Are there reasons for concern about inflation and its impact on stock prices?
Inflation is up again in July. There is another higher projection for the 2022 COLA figure to be announced in October.
Some federal employees under FERS could see a significant cut to their pensions if they meet these criteria.
Have you considered these inherent risks to your retirement plans?