Will inflation become big challenge for retired people after 10-20 years? - page 5.

jrrsparkles

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Quote from: krishnaverma on April 11, 2024, 05:47:56 AM

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

Inflation has been a challenge for the funds saved in fiat so if retirement funds are in liquid fiat whether in bank accounts or security deposit the value will go lower and it's expected to fell sooner in the future than in past so I won't be surprised if the purchasing power of $1 reduced by 50% in a decade.

poodle63

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its gonna be a problem if they just don't invest their money and let it just stay in their bank account certainly the inflation gonna eats up their life saving its undeniable truth but even then investing also carries risk which old people usually can't afford to have, its overall really difficult situation to get in, the best way is to have life saving as well as investment and big chunk at that but very few old people actually have such thing most of them just have life saving, I think saving gold might be viable for them at least to mantain their lifesaving worth but its indeed gonna be such a hassle but its still worth to try to look into.
overall it does gonna pose a challange for those elderly people, there's reason why managed investment fund by competent fund manager is a thing they offer exactly that to counter inflation but there are cases where the investment failing.
its always good to be rich when we are still young at least not elderly enough to have limited energy to do anything that requires hard work honestly.

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Quote from: krishnaverma on April 11, 2024, 05:47:56 AM

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

This is a problem because where i worked and resigned about 12 years ago, some percentage of our salaries were removed and put into a pension fund to be claimed when we reach certain older years, anyways since then my country's currency has devalued like 1000% till date. I frankly don't know if the pension fund company is going to pay me when I'll be eligible to collect in the old rate when I stopped work or in this current devalued rate, because I believe that they'll pay based on percentage, and it'll be very unfair to use the present devalued rate. If pensioners retirement benefits are not calculated based on the value of their currency in every year of their services, then it's a cheating on them, because if it's done on the present devalued currency, then they won't get everything that they deserves.

angrybirdy

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Quote from: krishnaverma on April 11, 2024, 05:47:56 AM

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

I don't know what will gonna happen to other people when they retire in the future but this will be an eye opener to all of us how investment/savings is important to have especially now while we are still young, we should have started an investment even if we start small as long as we can grow it, don't keep a lot of money in the bank and then have a small interest in return because it's really considered as loss because our money doesn't keep up with inflation. the best option is to have an investment and other businesses that will last long term. People nowadays should be more financially literate so that once our retirement age comes, we will not have difficulties in life.

Alone055

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What one does in the present will decide what kind of a future one will have regardless of inflation or any other economic and financial problem.

A lot of people don't take this seriously when they are well-off. They don't save or try to create assets when they are young earn well and have no hurdles in their way. They don't realize that their and their closed ones' future is connected to this because if they stay careless right now, times will be tough when they won't be working anymore.

So a person who has got a lot of time in hand before they retire need to make sure that they are using their money on the right places and aren't wasting it all on luxuries of life and living a great life while they can because bad financial decisions can make them suffer when they grow older.

Uruhara

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Quote from: krishnaverma on April 11, 2024, 05:47:56 AM

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.

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Quote from: krishnaverma on April 11, 2024, 05:47:56 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.

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Quote from: krishnaverma on April 11, 2024, 05:47:56 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.

Plaguedeath

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I use this calculator https://www.usinflationcalculator.com/

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.

If someone didn't dare to invest their money, they will broke in the future.

Oshosondy

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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.

krishnaverma

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

Topic: Will inflation become big challenge for retired people after 10-20 years? - page 5. (Read 565 times)