As individuals plan for retirement, it is essential to consider the impact of inflation on their savings. Inflation erodes the purchasing power of money over time, which can significantly affect the value of retirement savings. To preserve their nest egg, retirees can employ several strategies:

1. Invest in inflation-protected securities: Treasury Inflation-Protected Securities (TIPS) are specifically designed to protect against inflation. These securities adjust the principal value in response to changes in the Consumer Price Index, ensuring that the investment keeps pace with inflation.
2. Diversify investments: Diversifying a retirement portfolio across different asset classes, such as stocks, bonds, and real estate, can help mitigate the impact of inflation. Stocks, for example, historically have outpaced inflation over the long term.
3. Consider annuities: Annuities provide a guaranteed stream of income, which can act as a hedge against inflation. Some annuities offer cost-of-living adjustments that increase payouts in response to inflation.
4. Continue earning income: Retirees can consider part-time work, consulting, or other income-generating activities to supplement their retirement savings. This additional income can help offset the effects of inflation.
5. Regularly review and adjust the retirement plan: It's important for retirees to regularly review their retirement plan and make adjustments to account for inflation and changing economic conditions. This may involve increasing savings contributions or adjusting investment allocations.

By implementing these strategies, retirees can better protect their nest egg from the erosive effects of inflation and ensure their financial security in retirement.