WHAT IS THE RETIREMENT CRISIS ABOUT??
Outliving your income!
That is a grim reality for millions.
Growth is too slow to bring higher wages, but costs for everything are rising fast
Outliving your income
A long time ago many people did not live much past the age of 70-80. That has all changed. Now people are living longer than ever. The retirement they planned for only went to age 70-80. What is one to do after that age?
What is inflation?
To first understand why we’re having the retirement crisis, it may help to understand inflation and how it will affect the future value of your money.
Ask yourself questions are my property taxes more than the $3,327 per year like what is in the chart? What if you go to eat more than 2x a month? What if you have other expenses not accounted for? What if there are more innovations that we will pay for in the future? In other words, because of inflation assuming that you don’t have any debt, just household expenses the money you are saving today has to be enough to pay tomorrows prices, and the longer we live, the longer that money has to last!
|2017 Costs||2057 Projected Costs|
|Dining Out (2x)||$150||$428.33|
|Gallon of Gas||$2.20×15=$33.71||$144.71|
|Total for month||$1,404.96||$5715.88|
|Total for year||$16,883.54||$68,580|
Consumer Price Index (CPI), measures changes in price level of market basket of consumer good and services purchased by households.
To get an idea of how inflation will affect your future spending ability, use the CPI Inflation calculator below.