People now need to adjust their estimated post-retirement needs for inflation. Although people can’t know what future inflation will be, they can look at what it has been in the past and use their judgment to pick a rate for planning purposes.

The amount of personal savings they will need to fund their retirement depends on several variables including inflation, return on investments, and how long people will live. People already have an assumption about inflation. People can now summarize the savings required to fund their retirement income needs.

As a result of these calculations, people should have a good idea of their prospects for a financially secure retirement. However, if the amount required to fund their retirement income needs seems out of reach, here are some alternatives:

 Delay retirement a few years to allow more time to add to their savings and reduce the number of years for which People need to provide.

 Review their post-retirement budget for expenses that can be reduced.

 Review their assumptions about rates of return on their savings. Perhaps a bit more risk is required.

 Consider working part-time to supplement their income.