The Changing Face of Retirement

This post will cover the last of the Four C’s.

Cost of Living or inflation will need to be considered.

  • Inflation
    • Obviously if you are living on a fixed income with a relatively fixed asset base, inflation will be a challenge for a successful retirement
      • Recently it has been 2% or less
      • During the 1970’s, it was 8% or more
    • Healthcare costs have been increasing a substantially fast pace
      • Clearly healthcare cost will have to be factored into a retirement plan in some fashion
    • For many retirees, Social Security will be their only inflation adjusted income source

Certainty is something we all strive for in retirement. However many factors are out of our control. For example:

  • Life expectancy in general is increasing
    • But what will my life expectancy be
  • Healthcare costs are typically greatest the last few years of life
    • But when and how much will that be
  • Investment returns will be variable even if they are generally favorable
    • But Sequence of returns risk will be a concern

If any of this information strikes a cord with your thoughts and concerns, it’s time to schedule a visit with a financial planner.