Often times, when you think about retirement planning and your retirement years, you don’t typically think about needing to continue to invest. In fact, you think about how your financial needs and goals reverse from where they were previously. You used to focus on growing your savings and investing heavily while you’re working. Once you retire, you would think that you could ease up on the investments and simply reap the rewards from the investments and savings you had previously. But it’s important to continue to invest in some way while you are retired. You need to do this for one very specific reason.
Inflation and Cost of Living
Over the last several years, we’ve all seen how much cost of living can rise and how inflation can affect how far your paycheck can be stretched. This is a problem for those planning for retirement. While you may plan well now, in 20 years the expected amount of money you need may only cover three-fourths of the expenses you had saved for, or perhaps even less. Being able to anticipate the changes to the cost of living can help you to anticipate the amount of money you will need to make it through retirement comfortably. But you shouldn’t just rely on savings and perfect planning.
Continuing your investments into and during retirement is one way in which to help keep your income up to pace with inflation. Your money will be working for you and growing at a steady rate with the right investments instead of remaining stagnant and potentially losing value. Income for Life has retirement planning experts that can help you invest your money smartly in order to help avoid the pitfalls of inflation.