Inflation Impact on Retirement

Inflation Impact on RetirementThe primary concern for retirees is how inflation affects their purchasing power. This is true even if inflation remains low because seniors are more likely than younger consumers to spend money on things that tend to increase in price, such as healthcare.

Few things can cause as many problems for your retirement outlook as inflation. You know that when the average inflation rate increases, things get more expensive. But did you know that the types of goods and services used by the elderly are affected more by inflation than the goods and services used by younger people?

That means inflation is going to pack a bigger wallop to your retirement savings than you expect to face in your golden years.

As a matter of fact, seniors say that the most surprising thing they have discovered once in their retirement years is how much everything costs. When they started saving for retirement years ago, they knew that groceries, gas, medical care and other expenses would cost more than they were presently paying, but they had no idea the difference would be so dramatic. They never could have imagined how much more they would have to pay for everything they need.

Inflation can have a major impact on your retirement income and other financial planning concerns such as the cost for final expenses and Long-Term Care needs. As good stewards, we should consider the inflationary increases to our financial plan so that we can reduce the negative effects of price increases.

 

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