Purchasing power risk is the possibility that you will not be able to buy as much with your savings in the future. It represents a loss of value due to inflation. What is It? Purchasing power refers to what you are able to buy with a given sum of money. The risk, then, is that …
What is Inflation? Inflation is the gradual increase in prices over time. Specifically, it refers to changes in the Consumer Price Index. Understanding how price changes rise over time can help individuals budget and plan for the future. Businesses need to understand it to remain profitable. Policy makers need to know it as well to …
Retirement income is inherently dependent on many different factors. This is true because retirement income planning involves accounting for unpredictable variables over a long time horizon, and weighing them against the comfort level of the individual retiree. Inflation is one of those factors. Even for a given amount of retirement savings, different retirees can have …
