Factoring Inflation into Your Retirement Plan
Right now, inflation is top of mind for everyone, perhaps especially retirees.
Inflation is important. But it is only one of the risks that retirees have to plan for and manage. And like the other risks you have to manage, you can build an income plan so that rising costs (both actual and feared) do not ruin your retirement.
Inflation and Your Budget
Remember that in retirement your budget is different than when you were working, so you will be impacted in different ways. And, of course, when you were working your salary and bonuses might have gone up with inflation, which helped offset long-term cost increases.
Much of your pre-retirement budget was spent on housing — an average of 30%
