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mollyd77 asks,

There is no cost of living adjustment, and we are wondering what other people have done to adapt or work around that.

One way to estimate how much in savings you need to keep up with inflation is the difference in cost between an inflation-adjusted pension and a non-inflation- adjusted pension.

For example, right now a 55-year-old would pay an insurance company $326,000 for a $1000/month, inflation-adjusted pension. Without the inflation-adjustment, the cost drops to $214,000.

So someone with a $1,000/month pension should have about $100,000 in savings just to keep up with inflation.

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