Mistake #3: Ignoring inflation
The annual inflation rate in the US increased to 1.8 percent in October of 2019 and although this might seem low, it significantly affects the dollar value. More so, when it comes to fixed savings accounts which de-escalate with time. This means that for a retiree, inflation is public enemy no. 1.
To mitigate its effects on your retirement assets, specialists recommend investing more to set up your retirement nest egg for growth and adjusting your spending and retirement withdrawals. In addition, it is also a good idea to plan ahead and anticipate inflation-related higher costs such as healthcare ones. This brings us to the next section.