Cost-of-Living Increases = The Silent Killer of Retirement, Ep #59

<p>I received a phone call this week from a listener that I thought was absolutely crucial to share with my listeners. She had gone to a retirement seminar that I gave over 10 years ago. She didn’t take my advice then and regrets it now. Why? Almost 11 years later, she’s almost 76 and is looking for a part-time job to cover her expenses. What did I share in that seminar? Listen to this episode of the Retirement Made Easy podcast to find out! </p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[0:39] Check out the <a href= "https://retirementmadeeasypodcast.com/resources/" target="_blank" rel="noopener">FREE resources on my website</a>!</li> <li>[3:23] How to avoid being a Walmart greeter in retirement</li> <li>[11:15] What can we learn from this listener’s situation?</li> </ul> <h2>You must factor in how long you’ll live</h2> <p>This wonderful lady I spoke with had been retired for a year when she attended my workshop about retirement planning. The big thing that people don’t realize is that the average age of the American retiree is 62. Imagine a 62-year-old non-smoking couple. How long will they live once they retire? Research shows that their joint life expectancy is 30 years. I pointed out in my seminar that you have to look at the past. What were prices like 30 years ago in1991? You need to understand that you’re not going to be retired for only 5–10 years but more like three decades. </p> <p>You need to be aware that the cost of living will always increase, even in retirement. While you’re still working, income increases, promotions, etc. allow you to keep up with the cost of living. You may not even notice that the cost of auto insurance, cell phone bills, groceries, stamps, etc. is rising. When you retire, it’s a whole different ball game. You are on a fixed income that will likely never increase. Your expenses will never be fixed for the rest of your life.</p> <h2>Why you have to prepare for cost of living increases</h2> <p>This Gal didn’t realize she was setting herself