Planning For Retirement-Life Expectancy and Inflation

The life change of retirement may be positive experience only if it is seen not as an end but as redirection of activities and interests. By all means plan for changes and for new beginnings. Always think creativity and involvement and don’t fall into the “sun-belt-condominium syndrome”.

The retirement planning process involves looking at your current lifestyle and financial situation, the kind of lifestyle you envision for yourself and your family in retirement and determining the most efficient way to achieve what you envision. Everyone’s vision of retirement is different. What is your vision?

Aa you plan for your retirement; you need to keep in mind two things - how much you can accumulate till the time you retire and how much money do you require after retirement.

Although most Americans now expect to live longer than previous generations, that understanding has made little impact on their retirement planning. Whether you are years or decades away from retirement, if you are already saving, whether for retirement or another goal, keep going! The sooner you start saving, the more time your money has to grow. Make saving for retirement a priority. Devise a plan, stick to it, and set goals. It's never too early or too late to start saving.

Often people underestimate the impact inflation will have on their retirement plans. When you are working – your wages generally rise as the costs of goods and services increase. Your earnings may "keep pace with inflation", so normal inflation may not be a big concern. However, when you are living off of savings – inflation literally robs you of income.

The good news is that some pension programs (though increasingly few) adjust your income for inflation. The bad news is that if you are living in retirement by withdrawing from investments or savings, then the value of your money will dramatically decrease overtime. You will require far more money to support your lifestyle in the future.

Creating reliable, guaranteed streams of income is an important step in realizing your vision for retirement but just as important is protecting it. Ask yourself the following questions:

What can I do to ensure that I will never outlive my retirement income?

What can I do to protect my assets and income from certain financial and health risks?What more can I do to protect my family and my assets?

Please feel free to contact me for free assistance in answering these important questions.