Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 5
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.

intercst
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.