The COLA is a Cost-of-Living Adjustment for Social Security beneficiaries. It’s also known as the raise, which helps offset rising living costs so that beneficiaries don’t experience a decline in their standard of living. Seniors spend more on utilities, housing, and healthcare than younger people. In some places, the increase in prices of goods and services isn’t keeping up with general inflation. This means that the cost of living in those areas is increasing faster than average inflation.  How is COLA Calculated? COLA is calculated using the Consumer Price Index (CPI). The CPI measures the average increase in prices of …

When it comes to retiring early, some of the benefits are obvious. You get to live your life without the constraints of work, and you can pursue your own interests. But there are other good reasons for retiring early, and there are some reasons why retiring early is not the greatest idea. Your Dedication is Gone One of the good reasons to retire early is that you are simply not dedicated to working anymore. When you are no longer emotionally interested in working, your performance deteriorates and your company suffers.  Working Took its Toll In some professions, such as construction …

Longevity and the Retiree According to The Centers for Disease Control and Prevention, almost 75,000 Americans are centenarians, that is, they are more than 100 years old, and this aging demographic is having a dramatic impact on the labor pattern in the U.S. Rather than retiring at the traditional age of 65, more than 30 percent of adults in the 65 to 69 age bracket are still employed, as are 20 percent of those in the 70 to 74 age bracket. The drawback of increased longevity is the chance of outliving one’s finances. To offset this drain on their financial …

 Investing for retirement is the ultimate display of human patience and ability to overcome natural human instincts. This is because it is difficult for people to overcome their desire for instant gratification. In other words, it is a lot more fun to go spend some money at the mall than it is to save that money in an account for something that may seem like a long time away.  Those who do manage to get past their tendency for spending and do invest should know about a term called “risk tolerance”. This is the idea that one has a set …

Retirement income is a topic that must be carefully discussed with your financial advisor to determine the best possible route for you. There are many sources of retirement income, and some work better for you than others. Having different sources of income for your retirement will mean you won’t be as dependent upon any single source. Below are various sources of retirement income that you may not be aware of and should consider as options. Home Having a home can be a great source of income in your later years if you plan and budget appropriately. By renting out rooms, …

As people get older, they often begin to think more about retirement. For many, this is a time to relax and enjoy the fruits of their labor finally. However, retirees must be mindful of their finances, especially during inflation. With the cost of living increasing, it cannot be easy to maintain the same standard of living on a fixed income. Here are seven tips for budgeting during periods of inflation: 1. Review Your Expenses Annually Accounting for inflation is one of the most important aspects of budgeting for retirement. Over time, the cost of living will increase, and your expenses …

For a happy retirement, you need to have an income that will sustain the lifestyle you want. If you’re getting a pension from work or someone else’s work like your spouse, then congratulations – you’re all set! But if not, it can be challenging for people to imagine how they will afford their old age on their own. Luckily, many financial instruments and other tools out there to help make sure that retirement is more than just sitting around drinking tea. This article is going to cover some ways of achieving a happy retirement: 1. Set new goals Be specific …

It’s been just a few months since Covid-19, the novel coronavirus, made its debut on the world stage and sent shockwaves through economies and societies around the world. One of the most immediate concerns has been how the outbreak will impact people’s retirement plans. In this blog post, we’ll take a look at some of the latest research on how Covid-19 is affecting retirements in America and what that might mean for your own retirement planning. A recent study from the University of Michigan found that nearly one in four American adults over the age of 50 say they have …