5 High-Yield Dividend Stocks to Protect Your Retirement From Inflation

There are few things more disruptive to an economy than rising inflation and unemployment. Just ask Argentina, which has defaulted on its debt nine times and has spent the last 100 years combating average annual inflation of 105%. Unemployment continues to plague GDP growth in Greece and Spain. Despite being right around a 10-year low, unemployment is above 15% in both countries.

In the U.S., unemployment defined the Great Depression. Throughout the 1970s, U.S. inflation was above 4% and ended the decade at a staggering 13%. Over the last 30 years, inflation has been an afterthought, rarely rising above 3%. The post-pandemic economy could change that.

Cooped up at home and lacking spending outlets, Americans saved a ton of money last year. The U.S. personal savings rate peaked in April 2020 at 32%, meaning Americans were saving nearly a third of their income. Today, it's around 13%, still well above the usual 5% to 10% range. Stimulus checks paired with pent-up demand are causing prices to rise. And with rising prices comes inflation, which has gone from 0% to 2.6% in just one year. While U.S. inflation is unlikely to get to Argentina levels, it does devalue savings, which impacts folks in retirement. Here are some strategies retirees can use to protect their wealth from inflation.

Source Fool.com