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Need For Inflation Buffer
Ensure you do not run out of funds by making a proper plan with realistic numbers and updating it periodically or at a major life event.
Lifestyle Changes
If your income does not increase in line with inflation, your living standard may drop.
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Purchasing Power
If inflation spikes significantly, the cost of living will increase, adversely impacting the retirement corpus.
Reduced Value Of Assets
Many retirees depend on fixed-income sources like bonds, pensions, and annuities. These incomes may lose value due to inflation.
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Fill Gaps
Individuals who factor in inflation and fill the gaps in their plans are less likely to struggle financially post-retirement.
Real Numbers
Properly calculate your expenses to get a more accurate corpus target.
Compiled By Himani Verma
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