In our conversations you may have heard me discuss the “stealth tax” called inflation. I find that most never fully consider the affects of this through 30 plus years of retirement.
This article puts a number on that tax. The article even explains that this stealth tax could ruin your retirement. They used the median amount of money Baby Boomers have saved for retirement. That number is $152,000.
Although I know many of you have saved much more, you may want to consider your adult children also.
Consider if you retire at age 65 and you live to age 95, how long will $152,000 last? After you apply the stealth tax (inflation) at modest rate of 2.5% each year, “the purchasing power of that $152,000 will fall to less than $72,500 by 2050. In other words, your savings would lose around $79,500 worth of buying power over 30 years.” What if the inflation rate increases to 3, 4 or 5 percent?
If the government continues to print enormous amounts of money, could this happen? I hope not, but I find it wise that we consider it in all of our planning.
See more in this Fool article, This Hidden Retirement Trap Could Cost You $79,500
