The idea of planning for retirement is easy - you just tuck some money away into a savings account every week or month and when you retire you'll be all set, right? If only it were that easy! It's true that planning for retirement does involve saving up over as long a period as possible, but that isn't all there is to it. Here are other factors that you need to consider if you want to have the best retirement plan possible.
Inflation can significantly affect your retirement savings. While you are working, inflation is often offset by salary adjustments, such as cost of living increases and performance raises. But in retirement, you don't have these same gains to account for inflation, making it difficult to maintain the standard of living you desire.
Like many of my Boomer contemporaries, I don't foresee retiring to the golf course, or the cruise ship, or the garden, the garage, or even the couch. Instead, I suspect that we'll need to be generating an income - not through our meager investments but through the sweat on our carbuncled brows and the toil of our arthritic hands - until we draw our last ragged breaths.