Inflation Rates In Retirement Research

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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 …show more content…
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 …show more content…
Inflation rates, unemployment rates, high housing costs, etc., are things that get into the way with saving for retirement. Olson (2014) states that what Millennials should be doing as a generation would be take the first step. Even Millennials that do not have housing expenses or children can start a savings plan. It would be easier to contribute some money to a fund if there are no other expenses (Olson, 2014). Even when the Millennials are increasing expenses, they can continue to save. If saving for retirement is still not affordable, then consider freeing up unnecessary expenses. Another step that should be taken is to understand the plan. For those Millennials that are employed, it is best to understand the plan that the money is being contributed in. There is a percentage that is supposed to be contributed to the plan. Depending on the plan features, automatic savings in the plan can be increased and decreased. Taking control in retirement plans is another alternative. Retirement plans are offered for those whose employer does not offer them. If saving for retirement means that the Millennials should open their own Individual Retirement Account, then they should take control of the

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