[SPONSORED POST]
While most of the readers of this blog (I think) are in their twenties and thirties, this story is a valuable lesson on why we need to plan for the future. Remember the good old days when gas was under a dollar a gallon? Remember when we were kids and a candy bar was 25 cents, then 50 cents, then 75. I used to send thank you notes with a 28 cent stamp, now they are 42 cents and rising.
Seniors today may not have expected those dramatic changes in price. Look at how much has changed in the last twenty years, let alone seventy. The cost of living is on the rise, and there is no end in sight. That is what inflation is for the most part, a rise in the cost of living.
Fortunately for us working age types, our pay increases every year at the rate of inflation, or a little more if we are lucky. Our cost of living pay increase helps us to cover that extra four cents for a stamp or increase in grocery prices. When you are in retirement, you do not get a raise anymore.
When you plan out what you need to have in the bank to retire, remember that costs are going to go up. Food, travel, gas, clothes, and entertainment are going to cost you more the day you retire than they do today and will cost even more ten and twenty years after you retire. Don’t forget that you will be spending more time at the doctor when you are nearing 80 than you do today.
While we are still working, we can make an adjustment on how we live to ensure we can cover our costs, be they needs or wants, once we stop working. Today you can increase your 401(k) or IRA contribution. Plan for the future so when it comes around you don’t have to worry.
For now, many seniors are stuck in a bad situation. Costs have gone up and they have little opportunity to make up the gap. This has impacted the lifestyle of many retirees and their families. Remind your parents to think about this so you don’t get stuck with the bill later on in life.
What can you do today? Increase what you put into your 401(k) by 2%. After a few months I am sure you won’t miss it.
[SPONSORED POST]
