People are living longer and your retirement planning should reflect these additional years. A person retiring at age 67 is generally expected to live at least another 20-30 years. Consider what age you would like to retire, and plan your savings to cover your income needs for a longer life span.
Not only is life expectancy increasing, but so is inflation. Inflation can chip away at the value of your savings. For example, during the past 20 years, prices have been rising at a rate of 3%-4%. If inflation continues at that pace, the car that costs you $18,000 today, will cost you more than $36,000 in 20 years.
