Give Yourself a Pay Raise in Retirement
by Geoffrey Johnson, IAR, Retirement Income Certified Professional®
Aug 13, 2021
2 minutes
Because inflation erodes purchasing power, it’s painful for just about everyone. But it can be especially challenging if you’re a retiree whose budget is based on a fixed income.
Remember: Retirees can’t count on getting pay raises the way those who are still working typically can.
In retirement, you’re creating your own “paycheck” — usually from Social Security benefits; maybe a pension or two; and your savings, investment and retirement accounts. If the rate of inflation outpaces that paycheck — even if inflation grows at just 2% a year — you could be looking at a shortfall
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