Do you think you’re planning properly for retirement?

As seen in The Oakland Press

July 26th, 2026

Do you think you’re planning properly for retirement?

by Ken Morris

I’d ask for a show of hands, but obviously, I couldn’t see them. I’m guessing though that it would be around 50/50. Although I don’t believe many affirmatives would be completely confident. I say that because, over the years, so many clients have asked me if they could afford to retire. “How much is it going to take?” they’d want to know.

“It depends” sounds like a cop out, but I quickly clarify that it depends on how well they plan. After years of working with people preparing for retirement and the years after, I’ve concluded there’s no magic number that assures a comfortable retirement. Because it depends.

There are many factors to consider in order to plan a successful retirement. Some of them unpredictable.

For example, the Covid pandemic changed our lives beginning in January 2020.  One number from that date can help with current retirement planning because it helps illustrate the impact of inflation.

According to the Bureau of Labor Statistics, $100 in January 2020 would provide only $76.98 of purchasing power today. The increase in the prices of food, gasoline and housing and the cost of military conflicts have all contributed to rising inflation. Such erosion of purchasing power necessitates a place in your retirement planning formula.

I find it interesting that, when many people went back to work shortly after Covid, some chose to retire. They told me they crunched the numbers and determined they could make it work without working. I fear that many of those who did the cursory math failed to consider inflation. You can see the impact of inflation in just six years. Based on the January 2020 number, it would be judicious to plan on things costing about 25 percent more every five to six years. It could be less, of course. But it could me more. The notion that you’re retiring on a fixed income is erroneous. The income may be fixed, but the purchasing power is not. So don’t plan on it.

There’s another number you must factor into your retirement plan. 100. If you live to the age of 100, you’re going to have to spend more money. Many of my clients have told me that they’ve lived well beyond the age their parents passed away. And, you know, with better lifestyles and modern medical science, the number of centenarians is growing every year.

Have you noticed the number of senior communities that are popping up everywhere? Two things. One, many of them can help tack on a few years to your life. More years of spending for housing, medical and life in general. Medicare doesn’t pay for everything. And two, they’re not cheap.

Studies suggest that a retiree will need at least $250,000. Again, it depends. How well you plan is just as important as how much you have. Factoring inflation and longevity into your retirement planning is essential. Remember the 25 percent inflation guideline. And plan on living deep into your retirement years.

A retirement income analysis is a good place to start. It will project inflation, various growth assumptions on your investment portfolio and factor in longevity. It’s a benchmark from which you can periodically update the numbers to reflect recent investment performance, inflation and lifestyle changes. I’m sure your financial advisor will be happy to assist you.