Will your lifestyle today be the same when you retire?

As seen in The Oakland Press

August 9th, 2026

Will your lifestyle today be the same when you retire?

by Ken Morris

In recent years, we’ve been living in an economic environment where prices are constantly increasing. The new leader of the Federal Reserve has made it quite clear he wants to rein in inflation to the targeted rate of 2 percent annually. There are a number of sources that provide the inflation rate, but the current consensus is that it’s just over 3.5 percent. It’s important to note that getting the inflation rate to the targeted 2 percent doesn’t mean elevated prices will fall back to previous levels. It just means they’ll increase at a slower rate.

It may not seem like a lot, but just a few years of significant price increases have caused a great deal of anxiety among consumers. While some increases have been gradual, others like gasoline have risen substantially in a short period of time.

Many news agencies have recently written about the premium increases for those covered by the Affordable Care Act. In fact, anyone who pays for their own healthcare has seen huge increases in their premium. If the economy were a boat, the captain might say we’re taking on water. But we’re nowhere near needing to abandon ship.

I’m continually amazed at how consumers continue to spend without making any apparent lifestyle changes. For example, I recently dined with some friends from the west side of the state. It was an upscale restaurant, and it was packed. Yet there was a significant crowd waiting for a table. And judging from the streets and highways I drive, it doesn’t appear the high cost of gasoline has caused many consumers to stay off the road.

It seems clear that not very many people are cutting back on their lifestyles. But according to research, they are cutting back on saving for their retirement. Bloomberg recently published some data which indicated that 46 percent of working adults are deprioritizing saving for retirement. A shocking 72 percent admitted they were off track with their retirement savings. Surprisingly, just over 25 percent of those who participated in an employer sponsored retirement program had reduced their contributions.

As a financial advisor, I see such survey results as an indication that far too many households are living on the edge. They’re trying to make ends meet but not trying hard enough. In lieu of lifestyle cutbacks, they’ve either reduced or eliminated their retirement contributions. But not making changes to their lifestyles today, I fear they’ll be facing issues during retirement. Ultimately, far too many will be dependent on Social Security, a program that’s already in dire need of reform to ensure it can fully meet future obligations.

Nobody likes to cut back on their lifestyle, but not doing so now could mean a rocky trip through retirement. What can you do? Make a list. Take inventory. Figure it out. Many employers match their employees’ retirement contribution up to a certain percentage. If you’re not contributing the max, you’re essentially turning down free money. Big mistake. The definition of poor financial planning.

Don’t ignore reality. Not planning now will eventually catch up to most households. I strongly suggest that you closely monitor your spending, adjust your lifestyle and continue to save and invest for retirement. With some minor adjustments, I’m confident most people can stay on track for a comfortable retirement.