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
- Many people find it difficult to form the habit of “paying themselves first,” by making regular deposits to a savings plan.
Saving to Spend
- Money is saved for retirement purposes, but then is spent to make purchases.
- Income taxes can erode the growth of your retirement savings.
Longer Life Expectancies
- Longer life expectancies increase the risk of retirees outliving at least a portion of their retirement income.
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.