There is no need to wait for the government to announce the inflation index and we believe what they say.
This aside. The CPI is manipulated downward.
Topic: Will inflation become big challenge for retired people after 10-20 years? (Read 633 times)
April 20, 2024, 10:31:37 PM
It depends on how Venezuelan the economy of the country where you live becomes. Someone with financial intelligence will have prepared himself for a lifetime by saving and investing so that inflation does not affect him, and even if the country where he lives becomes hyperinflationary, to move to another country if necessary. But if we talk about people in general, not everybody is going to be prepared for it by far, many people live from paycheck to paycheck and if the policy of the country where they live ends up generating very high rates of inflation they are going to have a harder time.
This aside. The CPI is manipulated downward.
This aside. The CPI is manipulated downward.
April 20, 2024, 10:09:57 PM
Well, if the inflation is say 10% per year ... and you have a Bank deposit of say $1 000 000 .... you will lose 10% of it's buying power every year. The real inflation is much higher than the inflation that are provided by the government.. because governments manipulate the inflation basket from which the calculation is done.
They will remove items that went up significantly or they will not add it to the basket of items that they use, so that the inflation looks much better than what it actually is.
I think, people with money in long-term fixed deposits are in big trouble... if they use all the interest that they receive from those deposits.
There is no need to wait for the government to announce the inflation index and we believe what they say. We can also feel the level of inflation through our daily spending, because we are the people most affected by inflation. But saying that does not mean that savings deposits will become completely useless. In the long term, saving will be bad for us, but in the short term they are extremely important. What will you do in an emergency if you have no savings? Don't be like many people here who say use all your money to invest in bitcoin to deal with inflation and don't need any savings. Because there is no guarantee that investing will always bring us profits. They will remove items that went up significantly or they will not add it to the basket of items that they use, so that the inflation looks much better than what it actually is.
I think, people with money in long-term fixed deposits are in big trouble... if they use all the interest that they receive from those deposits.
April 20, 2024, 06:10:00 PM
Well, if the inflation is say 10% per year ... and you have a Bank deposit of say $1 000 000 .... you will lose 10% of it's buying power every year. The real inflation is much higher than the inflation that are provided by the government.. because governments manipulate the inflation basket from which the calculation is done.
They will remove items that went up significantly or they will not add it to the basket of items that they use, so that the inflation looks much better than what it actually is.
I think, people with money in long-term fixed deposits are in big trouble... if they use all the interest that they receive from those deposits.
At least those people have money, which it can be later repurposed and used in a more effective way, but those that have no money saved on their own are the ones that will suffer greatly during the next decades, since they are depending completely on the retirement fund they are hoping to receive, but if the system collapses during their most vulnerable moment, which is when they have retired already and cannot work anymore, they will have no way to pay for their expenses, putting them in a terrible position for the rest of their lives. They will remove items that went up significantly or they will not add it to the basket of items that they use, so that the inflation looks much better than what it actually is.
I think, people with money in long-term fixed deposits are in big trouble... if they use all the interest that they receive from those deposits.
April 19, 2024, 03:46:02 AM
What common mistake made by young people is they can always find time to gain money for their selves since they have plenty of time left in this world that's why they set aside those important things and take first what they can make them enjoy their life. YOLO mindset is the one actually killing their dreams so if they don't realize that certain bad things would ever happen if they didn't prepare for their future then for sure they would regret once they realize that they are in late stage on their life. There's no regret will come first as saying says so to avoid getting broke and sick when we get old much better if we are ready then prepared something so that when we became old and retired already we can still live a comfortable life and we can't bother anyone with this.
I feel like that is reasonable to want to live life first though. If you keep on postponing life, then you could always have something bad happen in later life and then suddenly you would not only spent all your life on saving, but then lost that saving because of something bad as well. What would you gain from that? Not only you would be poor but you also could say that you never lived neither.I am one of those people, I stayed at home all my life and didn't do anything, I didn't even live a proper life, I lived a terrible life when you look at my memories, but at the same time I have no money at all, literally zero, I am fully in debt. Don't be like me, I wish I never saved and just lived a very adventurous life when I was younger.
April 17, 2024, 10:08:19 AM
Inflation will hit seniors hard in 10 to 20 years. There are no "ifs" or "buts." This isn't a scare tactic; inflation is real, and it makes your money worth less over time. Picture it as a slow leak in your savings account for old age. Don't think it will fix itself by magic
History tells us that the prices of living, like housing and medical care, go through the roof over time. People who are retired right now are in pain. But those who are leaving soon? It's time for a whole new level of cash stress. It's not worth as much as it used to be. Savings accounts not enough to beat inflation? They are losing value instead of getting it. What's going on now is getting worse as time goes on
So, what the hell do you do? Save a lot? Invest all of your money? There is no easy answer, but not doing anything will cost you money. This is a serious problem that needs a serious answer. It won't go away if you ignore it; in fact, it will get worse
History tells us that the prices of living, like housing and medical care, go through the roof over time. People who are retired right now are in pain. But those who are leaving soon? It's time for a whole new level of cash stress. It's not worth as much as it used to be. Savings accounts not enough to beat inflation? They are losing value instead of getting it. What's going on now is getting worse as time goes on
So, what the hell do you do? Save a lot? Invest all of your money? There is no easy answer, but not doing anything will cost you money. This is a serious problem that needs a serious answer. It won't go away if you ignore it; in fact, it will get worse
April 17, 2024, 10:08:03 AM
What common mistake made by young people is they can always find time to gain money for their selves since they have plenty of time left in this world that's why they set aside those important things and take first what they can make them enjoy their life. YOLO mindset is the one actually killing their dreams so if they don't realize that certain bad things would ever happen if they didn't prepare for their future then for sure they would regret once they realize that they are in late stage on their life. There's no regret will come first as saying says so to avoid getting broke and sick when we get old much better if we are ready then prepared something so that when we became old and retired already we can still live a comfortable life and we can't bother anyone with this.
Absolutely, the whole YOLO attitude has a lot of young people living for today without much thought for tomorrow. It's easy to think you're invincible when you're young and that retirement is a lifetime away
April 17, 2024, 05:41:02 AM
It is already causing lot of problems for retired people. How much will this problem intensify in future ?
It’s anyone problem if you don’t save enough during your active years but if you manage to save money then inflation will not be your problem since you have your pension and at the same time savings money through your job salary.
You should consider that retired person usually spend less since they are already at the age which they are not active anymore on social gathering or any form of activities that requires heavy spending. Most of the time they are just buying daily necessities and spend time at home or vacation house. Inflation will only be a problem if you didn’t manage to break poverty during your active years.
Investing and planning are both needed in order to prepare for the future. Some may not think about it while they are still young, but I would give this piece of advice to my kids. They may not understand it yet, but later on, they will thank you for that
What common mistake made by young people is they can always find time to gain money for their selves since they have plenty of time left in this world that's why they set aside those important things and take first what they can make them enjoy their life. YOLO mindset is the one actually killing their dreams so if they don't realize that certain bad things would ever happen if they didn't prepare for their future then for sure they would regret once they realize that they are in late stage on their life. There's no regret will come first as saying says so to avoid getting broke and sick when we get old much better if we are ready then prepared something so that when we became old and retired already we can still live a comfortable life and we can't bother anyone with this.
April 17, 2024, 01:34:18 AM
Better to have it as early as now because life is unpredictable nowadays, it's better if we have our own investment that we can pass in our child or family members as part of having a generational wealth, Let's cut the toxic mentality wherein a person will leave their family members a huge debt rather than wealth, investment and trust funds? I mean, I understand that we are having different life but can we just think that as one of our motivation to have a comfortable life in the future?
Of course, it is possible to motivate ourselves to have a comfortable life in the future as long as we are willing to try to make it happen with our own efforts. Investments that can be inherited are good investments and of course our own family must be able to look after them. Because there are times when investment assets that we have saved and inherited will be sold by the next generation very easily if from now on we don't teach our own family how to look after them.
This means that we all need to look after what we have invested and what we have saved well from now onwards so that we can pass it on to our next generation. So our family and children also need to know what good investment assets are and why we try to save them as early as possible so that they can know that investment assets are very valuable assets and are also highly desired by many people, as in the example of Bitcoin in At the moment. That's what we also need to instill in them so that those who inherit the investment can also look after it well enough when we are gone.
April 17, 2024, 01:24:27 AM
Well, if the inflation is say 10% per year ... and you have a Bank deposit of say $1 000 000 .... you will lose 10% of it's buying power every year. The real inflation is much higher than the inflation that are provided by the government.. because governments manipulate the inflation basket from which the calculation is done.
They will remove items that went up significantly or they will not add it to the basket of items that they use, so that the inflation looks much better than what it actually is.
I think, people with money in long-term fixed deposits are in big trouble... if they use all the interest that they receive from those deposits.
They will remove items that went up significantly or they will not add it to the basket of items that they use, so that the inflation looks much better than what it actually is.
I think, people with money in long-term fixed deposits are in big trouble... if they use all the interest that they receive from those deposits.
April 16, 2024, 11:47:17 PM
It is already causing lot of problems for retired people. How much will this problem intensify in future ?
It’s anyone problem if you don’t save enough during your active years but if you manage to save money then inflation will not be your problem since you have your pension and at the same time savings money through your job salary.
You should consider that retired person usually spend less since they are already at the age which they are not active anymore on social gathering or any form of activities that requires heavy spending. Most of the time they are just buying daily necessities and spend time at home or vacation house. Inflation will only be a problem if you didn’t manage to break poverty during your active years.
Investing and planning are both needed in order to prepare for the future. Some may not think about it while they are still young, but I would give this piece of advice to my kids. They may not understand it yet, but later on, they will thank you for that
Better to have it as early as now because life is unpredictable nowadays, it's better if we have our own investment that we can pass in our child or family members as part of having a generational wealth, Let's cut the toxic mentality wherein a person will leave their family members a huge debt rather than wealth, investment and trust funds? I mean, I understand that we are having different life but can we just think that as one of our motivation to have a comfortable life in the future?
April 16, 2024, 06:59:09 PM
It is already causing lot of problems for retired people. How much will this problem intensify in future ?
It’s anyone problem if you don’t save enough during your active years but if you manage to save money then inflation will not be your problem since you have your pension and at the same time savings money through your job salary.
You should consider that retired person usually spend less since they are already at the age which they are not active anymore on social gathering or any form of activities that requires heavy spending. Most of the time they are just buying daily necessities and spend time at home or vacation house. Inflation will only be a problem if you didn’t manage to break poverty during your active years.
Investing and planning are both needed in order to prepare for the future. Some may not think about it while they are still young, but I would give this piece of advice to my kids. They may not understand it yet, but later on, they will thank you for that.
Also, even if you are already heading in your retirement age, you still have the chance to improve your financial conditions. Like start not buying unnecessary items. Try to invest into something valuable like jewelry. At least, you can easily pawn or sell it when you badly need the money. It may not be big investment, but you need to think of something that can be valuable in the future, and you can easily dispose in case you need some cash.
April 16, 2024, 06:57:01 PM
It is already causing lot of problems for retired people. How much will this problem intensify in future ?
It’s anyone problem if you don’t save enough during your active years but if you manage to save money then inflation will not be your problem since you have your pension and at the same time savings money through your job salary.
You should consider that retired person usually spend less since they are already at the age which they are not active anymore on social gathering or any form of activities that requires heavy spending. Most of the time they are just buying daily necessities and spend time at home or vacation house. Inflation will only be a problem if you didn’t manage to break poverty during your active years.
April 16, 2024, 06:45:23 PM
It is already causing lot of problems for retired people. How much will this problem intensify in future ?
inflation is a big problem not only in retired person but also in person who are still working specially when they only have minimum wages, it is a big problem that needs to be addressed, 10 years from now the inflation will surely still a big problem for the ordinary people who live in ordinary life of living except to those who are already rich because they have a lot of funds for thier needs. 
April 16, 2024, 04:55:41 PM
It is already causing lot of problems for retired people. How much will this problem intensify in future ?
If you are someone who are still that having a work or dayjob and seen up someone whom you do know having that kind of problem or struggles due to inflation and other correlated things then this is something that will really be giving out that kind of idea on what are the things that you would really be needing up to do for you to be able to avoid out on the same condition on which
the earlier the better when it comes on having that investment or trying out to build up some business as early as you could. Trying out to establish yourself on becoming a business owner
and having that multiple income source on which you could really be able to have that kind of savings or funds which will really be able to make you sustain on the upcoming years to come.
There are really just that things which could be that able to counter if you are really just that wise and really that mindful about on the things that you would gonna supposed to do.
April 16, 2024, 04:50:27 PM
It is already causing lot of problems for retired people. How much will this problem intensify in future ?
Which country are you using as a reference to describe the age you described above because inflation is different in each country. For instance, in the United State the inflation is averagely 3.15% for the month of March and in Nigeria, the inflation for the month of March is 33.20%. Retired people in Nigeria will be more frustrated with inflation than people in the US because that's like 10 times inflation of what US is experiencing and that's bad for the economy, not just retired people that will feel the impact, everyone will feel it.
Either retired or not, high inflation will only frustrate the hell out of everyone, it discourage investors and forced existing companies to closed down because doing business in such places is very bad. You might be making profits but inflation is destroying the value of their currency. By the time you do the conversion back to another currency e.g dollar, you will regret doing business in such countries.
April 16, 2024, 03:50:34 PM
It is already causing lot of problems for retired people. How much will this problem intensify in future ?
It seems like this is heavily country dependent and depends on what infrastructure a specific country has set up around retirement. In general, I cannot see most people who have pensions built up and invested reasonably in the stock market during their life time - in the format of pensions, will have any problem keeping reasonable pace with inflation during that time. Inflation runs through every economy and it is intertwined with business. If you are reliant on state benefits for retirement, hopefully your country is setup to keep pace and many are doing just that. Once your mortgage is paid off, the amount of bills a regular person will have are quite small in comparison, so if money is managed well it can stretch far.
April 16, 2024, 03:37:04 PM
It is already causing lot of problems for retired people. How much will this problem intensify in future ?
This is the importance of understanding that saving money or saving in fiat is not at all recommended if it is for the long term such as for retirement funds. Because fiat will always experience a decrease in value due to the impact of inflation. And slowly the value will decrease and imagine that in a few decades the money that looked like a lot will no longer be worth as much as it was when you first started saving. It would be better if we prepare ourselves by investing in things that are profitable and increase in value in the long term, such as real estate. Or land that can bring in passive income after we plant it with trees that can continue to bear fruit every season without requiring expensive maintenance. And we can take advantage of that in retirement. Land prices will continue to increase and so will the prices of fruit and trees. So this is the good thing about real estate investment for the long term.But buying real estate requires a lot of capital. So before that maybe we can do business to increase our wealth. But nothing is easy in this world. Well everything requires hard work and long learning. And inflation is always difficult to avoid. That's why we have to be ready to face it.
It's true, one of the things that causes inflation is giving pensioners' salaries to employees, and this has been hereditary and difficult to eliminate. every month there are people who retire and the pension salary is still given by the state as a thank you after dedicating themselves for many years in government, so another thing that has now started to be done is that there is no pension salary, what exists is a form of severance pay, namely cash after retirement. , this is different from pension money paid every month while still alive, if severance pay is paid once. and this money can be used as business capital in old age. This requires regular socialization by the government so that employees before retirement can prepare themselves thoroughly before the retirement period arrives
April 16, 2024, 03:24:15 PM
It is already causing lot of problems for retired people. How much will this problem intensify in future ?
It's getting worst here in my country I think every single year it all changes it's value taht is why I prefer earning in cryptocurrency or dollar because of it's higher value compared to having my local currency which depreciates so fast. Inflation is inevitable so I think the better approach to this is to invest in assets that are future proof abd inflation proof for us to prepare for it or just stay away from it so our funds are safe in the future. Easy to say but hard to do to be honest for some reasons. 
April 16, 2024, 03:16:08 PM
It is already causing lot of problems for retired people. How much will this problem intensify in future ?
inflation is a big problem not only in retired person but also in person who are still working specially when they only have minimum wages, it is a big problem that needs to be addressed, 10 years from now the inflation will surely still a big problem for the ordinary people who live in ordinary life of living except to those who are already rich because they have a lot of funds for thier needs. 
April 14, 2024, 05:38:31 AM
That's a very interesting topic to talk on.I think governments are trying to increase the pension of every individual with each budget that is being presented but it can't cope up with the inflation rate of course.
This will not affect them much in the near future because they start to compromise on certain things but for the long term they will lack fir basic necessities of life as the gap between the inflation rate and the increase in pension rate will increase. It'll be an interesting as well as alarming topic in the future.
This will not affect them much in the near future because they start to compromise on certain things but for the long term they will lack fir basic necessities of life as the gap between the inflation rate and the increase in pension rate will increase. It'll be an interesting as well as alarming topic in the future.
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