Whether you dream of settling down in an idyllic spot or traveling throughout your retirement, you may have a dollar amount in mind that represents a nest egg large enough to secure that scenario for yourself. No matter your vision, however, you likely need to rethink your retirement savings goal for at least one of these three reasons:
- No Vacation from Inflation: We can look forward to our savings increasing with time. Unfortunately, we can expect the same from inflation’s effect on the market. An item that costs us $5 this year, growing at the current average inflation rate of 2.4 percent each year, can cost us $10.19 in thirty years. To maintain your purchasing power in the future, push yourself to stow bonuses and weekly savings into your retirement fund.
- Increasing Health Costs: While we may try our hardest to stay fit and ready for a long and active life, we never know how our bodies will suddenly surprise us. Improved health care will likely enable us to overcome many diseases and physical challenges. But there are costs associated with medical advances. Many people forget to include this aspect of regular retired life when budgeting for their savings goal.
- Longevity Is a Double-edged Sword: Another benefit of advancements in healthcare is an increase in our life expectancies. Women, in particular, may want to consider saving for the long term. The average life expectancy of a man living in North America is 79 years of life; the average woman lives to 81 years of age!
It may seem important to save for your children’s education right now, and postpone your retirement saving. But also consider the benefits of a strategy that prioritizes retirement.
To learn more ways to prepare for the future, visit the Syncis blog at https://www.syncis.com/blog/