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What Are the Obstacles to Successful Retirement Planning?

There are a number of obstacles that you may face in planning for your retirement:

 Discipline to Save

Discipline to save.

  •  Many people find it difficult to form the habit of “paying themselves first,” by making regular deposits to a savings plan.

 Saving to Spend

Saving to Spend

  •  Money is saved for retirement purposes, but then is spent to make purchases.

 

 Income Taxes

Income Taxes

  •  Income taxes can erode the growth of your retirement savings.

Longer Life Expectancies

Advances in medical care and science is allowing us to live longer than ever before.

  •  Longer life expectancies increase the risk of retirees outliving at least a portion of their retirement income.

Inflation

Inflation requires more money to buy the same goods.

Longer life expectancies also increase the risk of inflation eroding the purchasing power of retirement income.

  • For example, if inflation increases at 3.5% a year, it would require over $1,400 in 10 years in order to maintain the original purchasing power of $1,000.

 

 

 

 

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