I have been retired for eight years and I’m starting to feel the impact of inflation. Make no mistake, I am not your typical retiree and that’s what scares me.
I have a very good pension, Social Security, a robust 401k; other investments and no debts. So if I’m starting to feel it, what about the more average retiree? It’s all relative of course, but there are many expenses one must cope with that are not income related.
Having been a benefits manager and then VP Compensation and Benefits for a large corporation, I have no excuse if I didn’t have a plan. I tried to impart the need for a plan to thousands of employees over nearly fifty years; sometimes it helped; sometimes it didn’t. Sometimes it was too tempting to borrow from the 401k or to take a big chunk out and buy that big something you always wanted.
The great majority of Americans face retirement without a traditional pension (excluding government workers of course).
To have a plan to take them through retirement most people need to make choices, if not sacrifices, during their working years. Many do not have the foresight to do that and thus savings (and that plan) suffer.