Retirement Savings Reality Check: Will My Retirement Last
How much does it cost to get by in retirement? ...Pretty much the same as before retirement... HOW DO YOU COMPARE? The average retiree spends $4,818 on monthly expenses; 75% on 4 items. How do you compare? 1. Housing ($1,734) 2. Transportation ($681) 3. Health Care ($628) 4. Food ($608) I nflation: a concern for retirees In 2020, inflation was 1.2%. In 2021, overall inflation surged to 4.7%, reaching a peak of 9.1% in June 2022. (Source: Investopedia). To compensate, consumers "look for bargains" and reduce "discretionary spending". "After spending more than two decades below 3%, the consumer price index (CPI)—a key measure of U.S. inflation—nearly tripled from 2020 to 2021, rising from 1.4% to 7.0%. Inflation fell a bit, to 6.5%, in 2022. Inflation occurs when changes throughout the economy drive prices broadly higher, reducing consumer purchasing power. This means that each dollar you earn buys fewer goods and services. ...