As a pensioner we are pretty much on a fixed income. We started the retirement gig 2 years ago just as COVID was starting. Everything looked dire as our investments dipped and then they roared back. Now we see another substantial dip, but the key concern is inflation. It was estimated by Bloomberg that the average cost caused by the …
As a pensioner we are pretty much on a fixed income. We started the retirement gig 2 years ago just as COVID was starting. Everything looked dire as our investments dipped and then they roared back. Now we see another substantial dip, but the key concern is inflation. It was estimated by Bloomberg that the average cost caused by the inflation over past 12 months is an increase in costs of some $5,000 a year for a basket of common purchases from food, energy, clothing etc. The problem is that we rarely see those costs reverse itself. Multiply that cost out over next 25 years and we will spend $125,000 more than we would have. Our only hope is that the inflation juggernaut slows down as our income is not multiplying to keep up.
As a pensioner we are pretty much on a fixed income. We started the retirement gig 2 years ago just as COVID was starting. Everything looked dire as our investments dipped and then they roared back. Now we see another substantial dip, but the key concern is inflation. It was estimated by Bloomberg that the average cost caused by the inflation over past 12 months is an increase in costs of some $5,000 a year for a basket of common purchases from food, energy, clothing etc. The problem is that we rarely see those costs reverse itself. Multiply that cost out over next 25 years and we will spend $125,000 more than we would have. Our only hope is that the inflation juggernaut slows down as our income is not multiplying to keep up.