After looking forward to it for many years and planning for it with anticipation, your years of retirement should be a time of enjoyment and a wonderful season in your life. But when the time comes, will you have all of the resources accumulated to allow you to live the life you imagined?

Most people will have to replace 70-80% of their current income at retirement age. Many will want to replace 100% of their pre-retirement income. Because we are living longer and healthier lives, we can expect to live 20 plus years after retirement and to be more active at an older age than previous generations. Then there is the inflation factor. Your accumulated nest egg will be worth much less in purchasing power because of it. Suppose we have an average annual rate of inflation of 4%. If you have $20,000 in current savings, that $20,000 would have to grow to $43,800 to have the same purchasing power 20 years from now.

Tell me “your” story of saving for your future! Your comments appreciated!

Content © Rich Brott, 2011

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