Will inflation become big challenge for retired people after 10-20 years? - page 4.

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Quote from: Uruhara on April 12, 2024, 05:42:01 AM

Storing fiat in the long term is just like letting its value continue to decrease.

With inflation, that's going to have a lesser value in the upcoming years. Say that there's a stable 3% yearly inflation then the value of your savings in the bank or wherever you're storing it like your vault, it's for sure going to decrease over time. That's why most of the wealthy people are investing their money and they understand the importance of making their money work for them. It sound genius and brilliant but everyone can learn it and it's no longer a trade secret that only the wealthy ones can do and know about it.

Quote from: Uruhara on April 12, 2024, 05:42:01 AM

Because the price of any item in 10 years will even increase above 10% at the normal inflation rate. And if we imagine that the world is experiencing a quite bad economic crisis like what has happened in the last few years.

It can even be more. With all of the cost rising effectively and they're not stopping at all. This is the new norm that we're experiencing and us while we're still quite young or when we're going to that point of retirement, we have to prepare ourselves as well. There's no way that the inflation will be stopped, it might calm down but it will never go away.

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Quote from: dothebeats on April 11, 2024, 01:36:33 PM

It sure will. If these retirement funds aren't put to use as investments, they will surely get screwed over by inflation over time. These funds stay as it is on their fiat values and isn't adjusted in any way by the banks that hold them. Even if you managed to hold $1M during your career, expect that it will go down by value by at least 10% in a decade. Better hold your assets in precious metals, crypto, or other such assets that can hold value over time if you want your retirement fund to really work out for you.

Storing fiat in the long term is just like letting its value continue to decrease. Because the price of any item in 10 years will even increase above 10% at the normal inflation rate. And if we imagine that the world is experiencing a quite bad economic crisis like what has happened in the last few years. So we can even see a 10% price increase in just a matter of days or weeks or months. High inflation and hyper inflation even haunt several countries, making their currencies worthless. So investing is always the best choice if it is for the long term. And if it's for use in retirement. So wouldn't it be better to invest in property or real estate if you consider the low level of risk? But there's no harm if we put a few percent in bitcoin too.

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Quote from: Oshosondy on April 11, 2024, 04:51:39 AM

Not that it is causing but that is how it was before if you leave your retirement savings in fiat. The government will manipulate it again and again in a way that after long time, the value if the money will decrease. That is why it is good to invest your money on assets like gold, or buy properties. You can even invest little amount on bitcoin when the bear market has been very significant.

It's only a handful of workers that can lay their hands on good money to enable them make some investments on these valuable assets, why I'm saying so is because, if you check the trajectory of the workforce in most countries, you see that some workers are earning what will take care of them and their family alone, whatever that is left for saving is literally next to nothing. So where will some of workers during their active years in service get that huge amount to invest in real estate, golds etc. however in my own thinking, it should rather be that, government should give an upward review on monthly pensions in every 10 years, at least to help the pensioners beat inflation slightly.

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If the rate of increase in retirement funds is increasing dependent to the inflation rate, it's possible that it won't be a problem to them plus there's also a lot of people right now that are on the age of retirement that's still on the politics which means that they could easily pass laws that would protect the elderly and make more benefits that would positively affect the older population. That's how I see this happening which is why it's never a worry to me that retirement people would get screwed over at their retirement years. I think that the real challenge in all of this is the fact that we still got no increase in wages that would make it so we don't have to wait for the retirement to enjoy life, it's really weird that we're too focused in retiring when there's the option that we should be able to live more while we're still working, I think a lot of us here are tired of surviving from paycheck to paycheck, maybe there's some time that we need to do some negotiations.

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It has been causing lots and lots of problems since its inception. And it is problematic not just for retired people but for everybody. It is problematic even to small children who are taught to save in piggy banks. It is problematic to adults who have been working hard and saving all their lives only to end up with greatly devalued money. A significant portion of their precious energy and time spent on labor are wasted because of currency devaluation.

Imagine working hard from morning until evening 6 days a week, saved much of the salary for the future, only to realize it can only buy less than half of what it could have bought when you were saving it. That isn't fair.

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Quote from: krishnaverma on April 11, 2024, 04:47:56 AM

It is already causing lot of problems for retired people. How much will this problem intensify in future ?

Most retired people who worked for the government depend on pension from the government when they are retired. And because of how much inflation is causing the prices of goods to increase, the value of the money that is paid as pension funds to these retired individuals reduces in value even before it is received by the retired personnel. This is a reason why inflation will always be a problem for retired people, and why it is imperative not to just depend on your pensions from the government as your only source of income after retirement.

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Quote from: krishnaverma on April 11, 2024, 04:47:56 AM

It is already causing lot of problems for retired people. How much will this problem intensify in future ?

If those who have retired don't invest before their retirement or after their retirement and are depending on their pension plan for survival, then inflation is going to make their little earnings useless. There are no two ways about it.

Unless it's those retired workers who have good investments standing out for them that yield them weekly or monthly income that won't be affected, one needs something that can meet up with the economic challenge in order to survive in an unbalanced economy. Saving cash and fixing regular pay can't do the job.

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I think it's common now. What is the answer? Not just pensioned people are having a hard time with inflation, and because of the continuing increase in inflation, in no time those pensions will be enough for those who receive them. Inflation is a big problem right now in every country, but what can we do? Maybe those younger people can have their extra income or extra job just to have another source of income, and that is, I think, the most sufficient way to survive in this current era where the inflation rate is also growing. But the thing is, how about those older people that rely on their pensions? Like I said, in no time their pensions will be enough unless the country's government also increases the amount that pensioners will receive, but we know it needs to be discussed and needs further study before they approve and implement it.

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Sure it will.

How much the pension right now will be lessening its value and purchasing power in the next 10-20 years. So, if there's no gain with the amount that they're receiving as pension then the things that they can be bought will also decrease.

This is the sad reality about life that when we grow old if we're going to receive $1k-$2k of pension monthly, how much it will be in the next decade or two.

Most likely the purchasing power of it might be like $500 or even lower at that time.

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Quote from: btc78 on April 11, 2024, 05:37:57 AM

Quote from: krishnaverma on April 11, 2024, 04:47:56 AM

It is already causing lot of problems for retired people. How much will this problem intensify in future ?

This is why before retiring you should make sure that you have everything in place. Before I retire, I need to check whether I could live the next 10 or maybe 20 years of my life depending on when I retire comfortably and if my family members are also well-taken care of.

We should practice saving and investing while we are young and still not close to our retirement age.

Inflation is one of the major problem we have at this present time and it is good for us to make mother adjust before retiring because things could be hard for someone that never made any plan about the life after retirement. Retirement is a time when we might not have the energy to do those things we normally do when are youth. Whether retirement or not, it is good for everyone to prepare for the future especially for when we would not have the strength to keep doing those things that we used to do without any bothers. Retirement fund can be utilized to do business so there will be inflow of money.

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It sure will. If these retirement funds aren't put to use as investments, they will surely get screwed over by inflation over time. These funds stay as it is on their fiat values and isn't adjusted in any way by the banks that hold them. Even if you managed to hold $1M during your career, expect that it will go down by value by at least 10% in a decade. Better hold your assets in precious metals, crypto, or other such assets that can hold value over time if you want your retirement fund to really work out for you.

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Quote from: krishnaverma on April 11, 2024, 04:47:56 AM

Re: Will inflation become big challenge for retired people after 10-20 years?

I think yes if the person receiving the pension doesn't change the money into an investment that could be a hedge.

Quote from: krishnaverma on April 11, 2024, 04:47:56 AM

It is already causing lot of problems for retired people. How much will this problem intensify in future ?

In short, retirees need to know how fiat money works. If now they realize that fiat money will not be able to maintain its value, where $100 will not be worth the same for several years to come, there is no other way than to convert fiat money into investment assets that can be used as a hedge.
I would probably call Bitcoin the first choice for long-term savings, fixed assets such as land could also be an option so that you won't complain in the future when the value of fiat currency decreases.

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Quote from: krishnaverma on April 11, 2024, 04:47:56 AM

It is already causing lot of problems for retired people. How much will this problem intensify in future ?

I don't think it's one of the causes of inflation but rather that pensioners are affected by inflation because they don't have other sources of income. This impact occurs because they only enjoy their retirement salary and they do not try to use the money to be more productive. In the future, retirement salaries will remain the same and the salaries they have will continue to lose value, making the problem worse in the future.

The solution is that they should try to use their retirement salary to increase their income so that in the future they will not cause problems. Utilizing investment and business will be a solution so that they can face this problem in the long term.

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Quote from: Plaguedeath on April 11, 2024, 04:55:33 AM

If you own $1.32 in 2014, now it's worth $1.
If you own $1.65 in 2004, now it's worth $1.

So imagine you own $50K in 2004, now it's worth around $30K, in 20 years your wealth decrease almost by half! exclude banks monthly fees, charge, etc etc.

You're not counting interest.

$1 in a bank since 2014 would have been at the end of 2022 $1.08
$1 in a bank since 2004 would have been at the end of 2022 $1.27

Anyhow, any of the major index have beaten that by a long margin, so even the less risky investments would have negated inflation.
So yeah, if you stashed banknotes under your rug or in a safe, you would have been in bad shape, not that gold coins would have done wonders.

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Quote from: krishnaverma on April 11, 2024, 04:47:56 AM

It is already causing lot of problems for retired people. How much will this problem intensify in future ?

It's worse, in our country alone with the very high inflation the pension cannot keep up yes the government increases the person but it's only a small percentage and the pensions just go to the medicines of the pensioners, so many pensioners here in our country are still depending to their children for support or they still work to sustain themselves and their family.
With inflation keeps going up you cannot retire even if it's your time to retire.

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Quote from: btc78 on April 11, 2024, 05:37:57 AM

This is why before retiring you should make sure that you have everything in place. Before I retire, I need to check whether I could live the next 10 or maybe 20 years of my life depending on when I retire comfortably and if my family members are also well-taken care of.

We should practice saving and investing while we are young and still not close to our retirement age.

I think most of the recent retirees at least from my place have already started utilizing this technique of having an extra income generating channel way before their retirement period arrives. This are mostly business that starts off as small scale and they grow it gradually. Before what we see is people opening Pension Fund accounts to save little until they retire, this days now they don’t do that they take the money and invest it right way because of how inflation eats it up.

For some who work In paces where they don’t have choice but to Join this pension schemes since it’s a must they result to taking loan from the work place and puts up their pension as collateral of they don’t pay up. I think this current generation are getting a little bit more ahead in terms of investing before retiring as they currently have many better options now than before.

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Quote from: krishnaverma on April 11, 2024, 04:47:56 AM

It is already causing lot of problems for retired people. How much will this problem intensify in future ?

Since we know that the retired senior citizens only depend on their pension to an extent for a survival, aside what they may also earn from their children in case of those that have children being capable of taking care of their responsibilities, a retired pensioneer can as well invest part of his money on two or three profitable assets like bitcoin and any other investment that could always serves then an income source over time with their retirement fund, instead of them leaving it in banks where inflation will affect the value and there is no increase that could cover up for the amount loss over the years.

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Quote from: krishnaverma on April 11, 2024, 04:47:56 AM

It is already causing lot of problems for retired people. How much will this problem intensify in future ?

Before now it is common to see retirees relocate to rural areas where they live peacefully because their retirement benefits and pension will be able to sustain them till they die. Today the case is different, most of them remain in Urban areas scrabbling for jobs because what they earn can no longer sustain them. Many of them.are scared of retirement that they keep manipulating their age to keep them in service.

Quote from: Oshosondy on April 11, 2024, 04:51:39 AM

Not that it is causing but that is how it was before if you leave your retirement savings in fiat. The government will manipulate it again and again in a way that after long time, the value if the money will decrease. That is why it is good to invest your money on assets like gold, or buy properties. You can even invest little amount on Bitcoin when the bear market has been very significant.

Investment needs a lot of knowledge because it is risky. I know some retirees who invested in some businesses that later went bankrupt. I suggest that every one that is working should have retirement plans on the ground. If they intend to establish a business, they should start learning and practising the business before retirement. This will enable them to be knowledgeable about the business before retirement. Many of these individuals are not aware of the profitability of Bitcoin, and this is why don't consider investment in the coin. For me, Bitcoin is one of the major parts of my retirement plans.

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Inflation isn't only a problem for retired people, even you're still 20 years old, I'm sure you've realized if the purchasing power in the last 5 years and now is different. I believe most people are invest their money, but it just different people will choose different investment based on their risk to reward ratio they can accept. Most people choose to invest their money in time deposit or stock ETFs, which isn't enough to outperform the inflation rate.

Retired people aren't really think about money anymore, they mostly care with what they can do and enjoy their life.

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Quote from: krishnaverma on April 11, 2024, 04:47:56 AM

It is already causing lot of problems for retired people. How much will this problem intensify in future ?

It all depends if the people invested their money for retirement or not. Without any personal savings or investments that fully rely on the government to take care of them will be in big problem. The retirement payments are not being adjusted for inflation, so over time retirees will become poorer. In most countries this is not really new and everybody should invest privately for retirement. Especially if you want to leave behind money for your family it's important to invest. We need to achieve higher returns than inflation to make sure we are not losing wealth.

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