Retirement Roadblocks: The Inflation Risk

 
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SAME MONEY, LESS POWER. Back in 1964, Ford introduced the Mustang at a sticker price of $2,368. Today, a Mustang starts at $26,670 and you can quickly spend more than $73,000 for a top-of-the-line version. This is just one example of inflation. Inflation is simply the increase in the cost of goods and services over time.

Periods of high inflation, like the mid-1970s and early 1980s, can create a challenge to maintaining an adequate standard of living. Even modest inflation levels like we have experienced over the past 20 years can deflate a retiree’s ability to cruise through retirement while maintaining purchasing power.

 
RetirementScott PattonRetirement