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URL:  http://boards.fool.com/elvats-you-say-your-pension-covers-your-living-30667012.aspx

Subject:  Re: 60 and retired Date:  5/3/2013  11:30 PM
Author:  pauleckler Number:  72173 of 75528

Elvats, you say your pension covers your living expenses. What about inflation? Is pension fixed for life? Or can you expect cost of living increases?

You will probably be retired for 30 yrs or more. So carefully consider the effects of inflation in your planning. Your cost of living will probably double at least twice during your retirement.

With pension covering your expenses you can be a bit more aggressive. That means you can put more into equities. I like the way the economy seems to be recovering with auto sales and home building reviving. That makes index funds look attractive to me. But you will want to keep an eye on things and sell quickly if the market changes for some reason.
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