The Importance Of Inflation Rates

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One important issue that Millennials overlook when saving for retirement are inflation rates. When saving in retirement accounts, it is best to know that inflation will affect present dollars put into the account in the future. Inflation rates reduce purchasing power and the interest rate in your savings account will likely be below the rate of inflation. The rate of inflation is increasing more than the amount of the savings account. Also, budgets are important to help Millennials have enough through retirement. With proper retirement planning, Millennials can get an idea of how much they will need in retirement based on their current savings. A comparison done by StatBureau showed that there was an increase in inflation rates during 2015 and 2015. over a period of a year (See Figure 3).
Inflation rates are currently increasing over the years and which can be a burden on Millennials trying to save because they will need to save more for retirement. Rattner (2015) states that Millennials are earning less
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During their working years, Millennials think it is a high priority to buy a house as compared to other priorities. Dickerson (2016) states that because of the jobs that Millennials have can pay lower wages than the jobs did in the 1960s, and it is harder for them to save to buy homes (Dickerson, 2016) Even for low-wage earners it is impossible to find safe affordable housing. Housing Costs continue to rise and have already in some places. Some Millennials avoid owning a home because they do not have sufficient income. This will cause them to have to keep renting or be forced to live with their parents. When they do buy their homes, they are burdened with a high mortgage payment and are forced to put more towards the house. Many of the Millennials cannot afford payments to mortgages which in turn affects retirement

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