When was the last time you heard someone complain about how much something costs?
When was the last time you complained about how much something costs?
If I had to guess, there are at least a few things you buy fairly frequently where you can cite a time they were far more affordable than they are today.
It isn’t your imagination, of course. Prices creep up all the time and a dollar, as they say, doesn’t buy what it used to.
It’s a harsh reality for everyone. It’s an especially painful one for people close to or at retirement age, especially as they begin to gather Social Security income.
And that Social Security payment is the only source of income for far too many people. That isn’t going to change as the population ages.
You’ve likely seen countless headlines on the 24-hour news networks and social media, or heard someone talk about how Social Security is going bankrupt. That isn’t completely true and the issue is a little more complex than that.
Those kinds of headlines are good at grabbing eyes and resulting in angry clicks. But what they don’t really do is get people thinking about just what they’re going to do about money in their golden years.
While retirement planning is especially important for people close to retirement age, it’s something everyone should think about. It doesn’t matter what stage of their professional life they’re currently in.
This is especially true when you think about, as I said, the fact that a dollar doesn’t buy what it used to.
A 33% Decline
According to new research out last week, Social Security benefits have lost 33% of their buying power since 2000. There was a Cost of Living Adjustment made earlier this year, but that was essentially canceled out by the fact that expenses have risen as much as they have.
Food and medical costs are responsible for a large part of the expenses that retirees face. In many cases, while the Cost of Living Adjustment since 2000 was 50%, food and medical costs went up 100% in the same span of time. Think about that in the context of the fact that many retirees only have their Social Security benefits to draw from. When you do, the signs pointing to disaster for millions of Americans are loud and clear.
It’s true today, it’ll likely be true for the foreseeable future.
I would hazard to say that most people are at least somewhat aware of the fact the cards are stacked against them when it comes to planning for a comfortable retirement. Even so, many feel as though Social Security will be enough to cover for them in the future. What they don’t realize is that payout is meant to provide only around 40% of their pre-retirement income.
So even if you cut back on expenses, as some plan to, the reality is that it might not be enough to make for a comfortable retirement.
Turning the Tables on Retirement
Making sure you have what you need when it comes to your retirement savings means taking control of your own finances.
That idea is why this publication exists. That idea is why you’re here.
Mainstream publications and talking heads generally offer the same boilerplate advice when it comes to your retirement.
Here, you’ll find specific, life-changing opportunities meant to keep you ahead of everyone else. This means taking advantage of coming bull markets that will thrive in the face of looming financial downturn.
It’s already in the beginning stages, and the signs say it’s only going to get worse.
You have the chance to secure your retirement. We have the information you need to make sure you’re able to do it.
Take control of your future now.
Keep your eyes open,
Ryan Stancil
Contributing Editor, Outsider Club
