According to a survey conducted by Fidelity Investments, average 65-year-old couple will spend about $400,000 out-of-pocket through retirement until 92 years of age, excluding cost of long-term-care.
People often ignore the cost of additional healthcare, high rate of inflation, as well as the risk of unknown health problems that may be encountered in future.
Thus, smart retirement planning necessitates additional healthcare planning as well as by keeping in the mind the inflation risks.
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(10) Ignoring The Corrosive Power Of Inflation
It is one of the most critical retirement investment mistakes to avoid by retirees. Several new retirees fail to understand & estimate the amount of retirement income needed for a comfortable lifestyle during old age.
They also drastically underestimate the adverse effects of a rising inflation on the purchasing power of a retiree. You should prepare long-term investment portfolios to derive best possible returns. Your returns must be at a rate that is sufficient to beat the high rate of inflation with as little risk as possible.
You should never hesitate to get rid of poorly performing investments from time-to-time to effectively deal with inflation.
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